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In the truest sense you are correct but in the corporate world they pay companies to offer these types of services
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Mmmm, i dont mean merely that Kraken is custodying their coins. I'm saying all the coins are with Kraken as collateral for a loan they can't pay.
It's pawn-shop analogy, and you're never getting those family jewels back
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nope, they don't. Not your keys, not your coins (they have no keys, all with Kraken)