protos.com
Coinbase has hit back at claims that it doxxed a customer who made use of the exchange’s first crypto-backed mortgage.
During a June 16 event, at which Coinbase unveiled 21 new products, the company shared a photo of the house apparently backed by the mortgage, describing the owner as someone who owns a lot of bitcoin ($BTC).
However, a critic soon claimed to have pulled up the buyer’s Zillow listing — not ideal, given that $BTC’s parabolic price increase over the past 17 years and the fact that keys instantly confer ownership make owners appealing targets for thieves.
Attempting to downplay any fears, a Coinbase spokesperson told Protos, “During the exciting process of closing on the home, Coinbase and Better worked closely with the homeowner on a mindful way to share the news while maintaining their privacy.
“We received a picture of the house, taken by the homeowner, and took steps to anonymize the house by removing and changing key identifiers and features.
“We then received their express permission to use the altered image in both Better’s press release and Coinbase’s recent showcase.”
Indeed, the house appears on a joint press release from Coinbase and the Better Home & Finance Holding Company, cross-posted to the company’s website in early June.
Bitcoin mortgages debut with 60% haircut and no margin calls
Clearly a customer’s house
Although it is digitally altered, the house is not a stock photo. On the original press release as well as during Coinbase’s launch event this week, the company clarified that the house is, despite modifications, a photo of the house of the customer.
A caption on the original image reads, “First home purchased with Better and Coinbase’s $BTC-backed mortgage.”
Protos was unable to determine the address of the house, while social media users have posted unconvincing screenshots of AI and Google Earth results.
The crypto-backed mortgage program is a joint effort between Coinbase and Better Home & Finance, a Nasdaq-listed lender run by Vishal Garg. The two companies announced the home purchase in March as the first bitcoin-backed, GSE-conforming mortgage.
The whole arrangement became possible after Federal Housing Finance Agency then-Director Bill Pulte ordered GSE companies Fannie Mae and Freddie Mac to count crypto as a mortgage-qualifying asset in 2025.
Under the program, lenders have counted pledged $BTC at roughly 40% of its value, a steep 60% haircut, whereas USDC gets about 80% credit. Liquidation kicks in only after a borrower goes 60 days delinquent.