Coinbase is facing scrutiny over its cbBTC user agreement, which states that if Coinbase loses the underlying Bitcoin backing cbBTC, the company’s legal liability changes. Instead of owing users the full value of their lost Bitcoin, Coinbase would only owe a proportional share of the remaining Bitcoin. This has raised concerns among users about the security and trustworthiness of Coinbase's services. Coinbase's chief legal officer has responded to these fears.