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Coinbase support is facing intense scrutiny as a series of users on X report having access to their accounts restricted. The harsh reaction erupted after Coinbase attributed the slight increase in account limits to prolonged inactivity and FUD (fear, uncertainty and doubt) concerns. However, hundreds of users commented on the post, detailing how their accounts were frozen for months, even years. Users on X also added a community note, saying Coinbase’s statement was false.
Coinbase Faces Severe Scrutiny From Users
On Monday, December 9, Coinbase support noted a significant increase in account activity, including new and reactivated users. The exchange claims that this has led to a 2-3x increase in fraud attempts. Coinbase said the platform’s automated fraud prevention method restricted some accounts due to a sudden increase in activity after last month’s election.
“We have seen an explosion of new users and returning users reactivating their accounts post-election. Along with this boom, as usual, we have seen a 2-3x increase in fraud attempts. This is causing a small increase in restricted accounts and CX wait times are also increasing.” Coinbase write on X (formerly Twitter).
However, the cryptocurrency community has challenged Coinbase’s story. Users added notes to Coinbase’s posts on X, accusing the company of misleading the public and confirming that restricted accounts are common.
“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 requested, something else is needed,” said user Kyle Brehm feedback.
Many people shared experiences of lengthy account freezes, some lasting years, with little to no explanation from Coinbase. Some users claim their accounts are restricted after using a VPN or marked for long-term manual review. Some people had to stop trading and withdraw money for months.
“My Coinbase account has been under manual review for over a week. Can’t trade, can’t withdraw money, all I can do is look and ask compliance and support desk to resolve. Not responding to my questions?,” said one user write.
The issue has sparked an explosion of outrage, with hundreds of comments flooding Coinbase’s posts. The overwhelming number of complaints underscores the severity of customer dissatisfaction.
“I think I speak for everyone when I say Coinbase has customer support problems. They should have a 24/7 customer support line you can call and talk to a real person to resolve your account issues in a timely manner and get answers and resolutions. It shouldn’t be so difficult,” said Dogecoin influencer and millionaire Glauber Contessoto Posted today.
Coinbase’s difficulties are not limited to user dissatisfaction. Recently, the exchange withdrew from Türkiye, closing operations after withdrawing its registration application with the country’s regulatory agency. The move reflects the challenges other exchanges such as Binance and KuCoin face in managing the regulatory environment in Türkiye.
In October, Coinbase faced another setback when a phishing scam cost them $6.5 million. A hacker pretending to support Coinbase hijacked the funds, laundered them through a wallet linked to TON, and disappeared after deleting his social media accounts.
Despite facing these challenges, Coinbase has had a financially strong 2024. Increased cryptocurrency trading and potential regulatory changes in the United States have pushed the exchange’s shares up 97% year-to-date.
Besides, their layer-2 network, Base, has achieved significant milestones. Base surpassed six million transactions per day in Q3 and currently ranks as the 5th largest blockchain by total value locked (TVL).
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