What’s Different at Earnity?
What’s Different at Earnity?

Legally Protected Trust Account Structure

With 2023 now underway, we’re reflecting on the challenges of 2022: stablecoins stumbling, runs on exchanges, crypto exchange bankruptcies, and the fraud that precipitated FTX’s collapse and SBF’s fall from grace. What a year.

With all the FUD (Fear, Uncertainty and Doubt) it’s no surprise that investors are unsure of what to do with their crypto, who to trust, and where to go for help.

We think everyone should do extensive research on their crypto providers to help them keep their crypto safe. With that in mind, we wanted to make it a little easier for our existing and prospective customers to do their research on us.  So here’s a little more information to help anyone curious about Earnity understand our approach to crypto custody and how it’s different.

As background, many crypto exchange providers co-mingle customer funds and use these funds to make money for their own purposes. That’s not what we do at Earnity.

At Earnity, each account is under a legally protected trust account structure. This means that when you fund your digital wallet with digital assets, an account is opened in your name with our custodian, Prime Trust. This account is yours, and the legal protections in place are designed to ensure that your funds cannot be rehypothecated or used in any way that might put them at risk or make them subject to claims from our creditors.

So why is this important? And how does this help you keep your crypto safe? With our set up, in the unlikely event of default or bankruptcy by Earnity or Prime Trust, the trust account structure ensures that your digital assets remain yours and are not subject to seizure or distribution to creditors. It also protects against the risk of co-mingling, which can occur when an exchange uses customer funds for its own purposes or mixes them with its own funds. By keeping customer funds separate and protected, we are able to provide an added level of security and peace of mind to our customers.

Choosing a cryptocurrency platform can be a daunting task, especially in light of recent events in the industry. We’re here to make it a little easier for you to decide if Earnity is the right choice for you. We hope that our approach with protected trust accounts will give you more peace of mind to connect, learn and earn crypto  with us. Please reach out to customer support at https://support.earnity.com/en/ with any questions or see our Help Center here.

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