Coinbase Faces Intense Backlash Over Account Restrictions Claims

Coinbase Support has come under severe scrutiny as users on  X reported restricted access to their accounts. The backlash came after Coinbase claimed that a ‘minor increase’ in restricted accounts was due to prolonged inactivity and FUD (fear, uncertainty, and doubt) concerns.

However, hundreds of users have commented on the post, detailing how their accounts have been frozen for months and even years. Users on X also left a community note, saying Coinbase’s statement is false. 

Coinbase Support Faces Major Scrutiny from Users 

On Monday, December 9, Coinbase support acknowledged a significant rise in account activity, including new and reactivated users. The exchange claimed that it has led to a 2-3x increase in fraudulent attempts.

Coinbase said that the platform’s automated fraud-prevention method restricted some accounts due to a sudden spike in activity after last month’s election.

“We’ve seen a surge of new users and old users re-activating their accounts post-election. Along with this surge, as is typical with surges, we’ve seen a 2-3x increase in fraudulent attempts. This is causing a minor increase in restricted accounts and elevated CX wait times.” Coinbase wrote on X (formerly Twitter). 

However, the crypto community has challenged Coinbase’s narrative. Users appended notes to Coinbase’s posts on X, accusing the company of misleading the public and confirming that account restrictions are widespread.

“This is not FUD.  My coinbase account has been locked for months, basically because I used a VPN once.  Every time I provide what is asked for, something else is needed,” one user named Kyle Brehm replied. 

Many shared experiences of prolonged account freezes, some lasting years, with little to no explanation from Coinbase. Several users claimed their accounts were restricted after using VPNs or flagged for extended manual reviews. Some had suspended trading and withdrawals for months.

“My Coinbase account has been under manual review for more than a week.  Cannot trade, cannot withdrawal, all I can do is look and ask Compliance and the Help desk to resolve this.  No response to my inquiries?,” one user wrote. 

The issue has sparked significant outrage, with hundreds of comments flooding Coinbase’s posts. The staggering number of complaints highlights the severity of customer dissatisfaction.

“I think I speak for everyone when I say Coinbase has a customer support problem. They should have a 24/7 customer service support line you can call and speak to a real person in a timely fashion about your account and get an answer and resolution. It should’ve be that difficult,” influencer and Dogecoin millionaire Glauber Contessoto posted today.

Coinbase’s struggles are not limited to user grievances. Recently, the exchange exited Turkey, closing its operations after withdrawing its application with the country’s regulator. This move mirrors challenges faced by other exchanges like Binance and KuCoin in managing Turkey’s regulatory environment.

In October, Coinbase faced another setback when a phishing scam led to a $6.5 million loss. A hacker impersonating Coinbase Support stole funds, laundered them through TON-linked wallets, and vanished after deleting social media accounts.

Despite these challenges, Coinbase experienced a financially strong 2024. Increased crypto trading and potential regulatory shifts in the US propelled the exchange’s stock to a 97% year-to-date gain. 

Also, its layer-2 network, Base, achieved notable milestones. Base surpassed six million daily transactions in Q3 and is currently ranking as the fifth-largest blockchain by total value locked (TVL).

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