If Coinbase is doing this, it's the next FTX - eventually.

I doubt this is occurring because, one it's illegal, and two you will eventually figure it out because at some point the Bitcoin on the books won't match the on chain data.

There is no way to cheat the next block in Bitcoin. So once it's written, you have to live by it. You may cheat people but the Bitcoin system itself can't be manipulated so you will eventually be discovered - either through default or someone finding out and lose your credibility.

The CURRENT banking system cyclically fails and the Fed/system steps in and bails everyone out.

That ain't happin' with #Bitcoin.

Chill - use ONLY cold storage to keep your Bitcoin safe. And let the Charlatans do their thing so we can clear them out over time.