I understand that the online platforms are prone to cyber attacks but doesn’t the FDIC insurance make that a non issue?
Coins at Coinbase are not FDIC insured, only fiat can be insured up to $250k this way.
Digital currency is not legal tender, is not backed by the government, and digital currency accounts and value balances on Coinbase are not subject to Federal Deposit Insurance Corporation or Securities Investor Protection Corporation protections.
What Coinbase has is private insurance of $250 millionfor the coins that held in its hot wallet, which's only 2% of their total coins. For the coins in tier cold storage, there is no insurance.
The frozen accounts thing is concerning. I wonder the reason?
The reason is whatever they think a reason might be to do so.