Date Received: 2024-01-22
Issue: Fraud or scam
Subissue:
Consumer Complaint: I was told coinbase as ways you can stake your funds and collect interests. When I went into the coinbase wallet I was given a link That brought me to this company that I thought was part of Coinbase because the scammers told me they were and I was in the coinbase wallet so it made sense XXXX XXXX XXXX XXXX XXXX I invested about {$470000.00} All to find out later it was fake because somebody help me see that it wasn't going into my wallet. I was trying to buy USDC and convert my ethereum to it. I had asked the company if they were a scam a few times and they didn't tell me. I then ask them to make sure no more crypto is sold to this company. They gave me a complicated way to check and then said they can't stop any sold crypto. Why would they allow this company to link to their wallet? XXXX XXXX XXXX XXXX XXXX
Company Response:
State: CA
Zip: 94903
Submitted Via: Web
Date Sent: 2024-01-22
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2024-01-21
Issue: Other transaction problem
Subissue:
Consumer Complaint: I am writing this letter to bring to your attention a matter of significant concern regarding the fair and just treatment of customers of the cryptocurrency exchange Coinbase. More specifically, this is related to a particular situation that has affected not only myself, but many unwitting customers attempting to utilize services offered by Coinbase, in the context of transactions executed on the XXXX XXXX. Over the past 2 years, numerous individuals, myself included, have shared their experiences on various social media platforms, outlining a recurring issue that has resulted in the loss of customer funds. In some situations, such as my own, the losses have been substantial. ( approximately {$20000.00} USD as per recent exchange rates ) The specific situation occurs around users attempting to send native XXXX existing on the XXXX XXXX to their Coinbase exchange wallet. While the intent is to facilitate the movement of XXXX on to the Coinbase exchange for liquidation to XXXX currency or to trade for other cryptocurrencies offered by the exchange, an extremely critical discrepancy occurs. It has come to the attention of those affected, due to unpredictable circumstances, while attempting to transact on the XXXX XXXX, the origin wallet, ( in my case named XXXX XXXX ) and the XXXX blockchain interact in a manner that sends a wrapped version of the XXXX token to XXXX XXXX wallet address. The intended transaction is to send XXXX on its native blockchain, however a wrapped version of XXXX gets sent on the XXXX blockchain. At no point during the sending process is the sender notified that the wrapped version of the XXXX token is being sent. It is important to note the userinterface of the wallet displays the transaction of sending wrapped XXXX identically to sending native XXXX on its native home blockchain. One can only deduce this transaction with indistinguishable charecteristics occurs because the sending wallet and the XXXX blockchain view native XXXX and wrapped XXXX in its home ecosystem as identical. Therefore as per the XXXX blockchain protocols, they can be utilized interchangeably. However this interchangeability is not recognized by Coinbase when it comes to crediting your account, which exclusively supports only native XXXX on its exchange wallets. This " selective " version of accepted XXXX and lack of interchangeability when it comes to crediting customer accounts seems to be done on purpose. Proof to this nefarious business practice can be obtained when typing in wrapped XXXX in the XXXX search tool built in to the coinbase user interface. This search for what Coinbase calls an " unsupported cryptocurrency '' directs users to their Coinbase XXXX exchange wallet and includes balance, transactions and history but only reflective of native XXXX. This is proof Coinbase understands the interchangeable nature of native and wrapped XXXX on the XXXX blockchain but lacks support for the wrapped version when it comes to crediting customer accounts. Even though Coinbase fails to provide any accounting related to recieving wrapped XXXX, irrefutable proof that the wrapped XXXX token is actually located in the customers Coinbase exchange wallet is available via XXXX, which is the built in utility that allows users to reference searchable parameters, in order to examine in detail, any transaction executed on the XXXX blockchain. Thus It can be confirmed by the XXXX XXXX that the Coinbase exchange wallet address successfully recieved the wrapped XXXX. To reiterate, the transaction is recorded as successful on the blockchain, however Coinbase does not credit the customer account. After seeking assistance from Coinbase customer support, including speaking with managers and their escalated technical support teams there has been nothing but stiff resistance to offering any type of help. Coinbase tech support has given the same useless information for almost 2 years. They proceed to tell me that wrapped XXXX is an unsupported cryptocurrency on the Coinbase exchange. They then proceed to remind me to always make sure I am sending the correct cryptocurrency on the correct blockchain and that they recommend to always do a test transaction worth very little money to ensure everything is correct before sending any significant amount. They then remind me that since wrapped XXXX is not supported by Coinbase exchange, the only way for those funds to be returned, is if in the future Coinbase decides to list wrapped XXXX on its list of exchange supported cryptocurrencies. I do not believe this situation has garnered the attention it is deserving of by Coinbase technical support. If they did look into the situation in depth, they would realize their recommendations lack any relevance and their XXXX size fits all remedy does absolutely nothing to address this problem. The recommendation to do a small test transaction would not have prevented this situation because the behavior of the origin wallet and the blockchain offer no distinction between the wrapped and native version of XXXX in all steps leading up to the execution of the transaction. At the time, I held a significant amount of XXXX in my wallet, I executed the transaction with the intention of sending native XXXX, the interaction with the graphical user interface was executed in an identical manner as other instances where native XXXX was sent. There was no way of knowing which version of XXXX was going to be sent on which attempt. Due to the amount of people affected by this unintentional, unsolicited switch between wrapped and native XXXX, including people that are very knowledgeable and experienced with cryptocurrencies and blockchain technology, it is evident that this occurence is not a result of user error, therefore their recommendations to avoid such a situation are not applicable. If Coinbase wants to conduct business with the public, and includes the XXXX blockchain in their offerings, at the very least, they should be obligated to function with full compatability to the XXXX blockchain. Additionally if there are discrepancies or situations such as this that can be described as " glitches " that are of an unforeseen nature, Coinbase technical support should be receptive to the complaint and always work towards a fair resolution. The number of affected customers that have voiced their grievances with Coinbase publicly on various social media platforms is truly staggering. Many customers, such as myself have XXXX XXXX XXXX of dollars held XXXX by Coinbase. Although, I personally am not aware of an instance where funds have been outright appropriated ( since blockchain at its core is the most transparent form of recording the movement of money ), it is reasonable to believe the existence of such funds within the corporate holdings of the vast Coinbase machine provide some sort of benefit. All businesses benefit from having assets on their spreadsheets.There is a growing consensus that Coinbase justifies holding customer funds by wrongfully attributing this situation to user negligence and error. However, this is not a situation where the wrong cryptocurrency was sent to a wallet address on an incorrect blockchain, nor is it the result of any other avoidable error made from haste or XXXX. XXXX posted to social media of the steps during the failed process of sending XXXX on its native blockchain absolve those affeccted from fault. The decision to not offer any support in this situation is strictly a policy issue that lacks logic or is motivated by other reasons. Other cryptocurrency exchanges have addressed this specific issue successfully for affected customers. Therefore, it is clear that it is within the realm of possibility to offer customers a resolution to this problem. In conclusion, I kindly request the representatives of the finacial regulatory institutions take the appropriate measures to ensure cryptocurrency exchanges implement safeguards to prevent such incidents and provide assistance to customers that are affected by situation. This will not only protect consumers but will add to the overall stability, strenthen the reputation and enhance the regulatory framework of this exciting new form of finance. Thank you for your attention to this urgent matter.
Company Response:
State: NY
Zip: 11209
Submitted Via: Web
Date Sent: 2024-01-21
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2024-01-21
Issue: Other transaction problem
Subissue:
Consumer Complaint: On XX/XX/year> {$8500.00} was transferred from my bank account into Coinbase. I then noticed that there were transactions occurring within my coinbase account that were not initiated by me. I immediately requested a password change and that my account be locked so that no money could be transferred out. Instead of helping me secure my account, Coinbase locked me out of my own account for XXXX hours for verification and when I was finally able to log back in, all my money was gone including additional funds I had in the account before that day. I called Coinbase begging for help and begging to get my money back but they denied my request and told me it was my fault and that I had initiated the transfers when I did not. I requested they provide the IP of whoever or wherever the transfer was requested from and they denied it knowing that I was not the one who requested these transfers. I dont know who stole my money or how they did it but my money was stolen and denied. Ive been trying to fight this for the past year but Coinbase is not helping me at all and refuses to cooperate. Please Assist!
Company Response:
State: NY
Zip: 117XX
Submitted Via: Web
Date Sent: 2024-01-22
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2024-01-21
Issue: Other transaction problem
Subissue:
Consumer Complaint: XXXX XX/XX/XXXX : Attempted to send cryptocurency to known, legal, and reputable associate for payment. Purchase of XXXX succeeded, but send failed. Assumed it was a glitch and dealt with payment by other means. XXXX XX/XX/XXXX : Attempted to use account again. Failed. Noticed that account is restricted from sending crypto AND purchasing crypto. Opened support case XXXX. Was told it would take an undetermined amount of time to investigate, but I would be contacted when it's resolved. My guess at this point is that some algorithm flagged who I was paying as suspicious. XXXX XXXX opened support case XXXX because hadn't seen update. XXXX XX/XX/XXXX : Notified that Purchasing was enabled on my account. Checked, and purchasing is enabled, but sending is NOT enabled on my account. XXXX XX/XX/XXXX : opened support case XXXX to get sending enabled. Told that this will take an undetermined amount of time to investigate, and I will be notified when resolved I was not notified. The case says it's resolved, but none of the cases on the website provide a date of resolution. XXXX XX/XX/XXXX : Contacted customer support to get information. Representatice says : " Thanks for waiting, XXXX. After reviewing your account, it appears your sending restriction will remain permanent. Please know that we are not able to provide more information regarding this decision on your account and on how these are made. '' Representative confirms that I may never send crypto via Coinbase.
Company Response:
State: MD
Zip: 209XX
Submitted Via: Web
Date Sent: 2024-01-21
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2024-01-19
Issue: Fraud or scam
Subissue:
Consumer Complaint: Commencing on or about XX/XX/2023, I fell victim to a multi-layered scam operation run by a Payback Imitation which involved me making deposits for a total amount of XXXX ETH from my Coinbase account to fraudulent investment firm ( XXXX ).
Company Response:
State:
Zip: XXXXX
Submitted Via: Web
Date Sent: 2024-01-19
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2024-01-19
Issue: Other service problem
Subissue:
Consumer Complaint: The Complainant was defrauded by unknown persons operating through the unlicensed financial brokerage platform XXXX XXXX XXXX, which solicited the Complainant to invest substantial amount of money. All payments were made in the way of crypto-transactions to wallets nominated as beneficiary wallets by the representatives of the unlicensed financial broker. All such transfers were made through the Complainants wallet hosted by Coinbase. The Complainant considers the beneficiary wallets being an integral part of the fraudulent scheme behind XXXX XXXX XXXX. The Complainant also know that under the so called travel rule, XXXX XXXX XXXX XXXX ( XXXX ) are put under certain obligations, which include collection and keeping record of information about the beneficiary wallets, especially about if the beneficiary wallet is hosted ( including which is the hosting exchange ) and/or if the beneficiary wallet is unhosted. Based upon the understanding that Coinbase is acting compliant and will provide the due care towards its own wallet-holders, the Complainant addressed a relevant request for provision of information. Such letter was solely based upon the assumption that : ( a ) Coinbase should have collected the requested information as a part of their regulatory obligations ( if it has acted XXXX compliant as it declares and advertises ) ; ( b ) neither part of the requested information requested is considered confidential and is not protected under any law ( it does not qualify under any rules as personal information ) ; and ( c ) the complainant has justified legal interest to have knowledge about the beneficiary wallet holder and about the crypto-exchanges that possibly hosted wallets, to which the complainant made transactions. Unfortunately, Coinbase has not provided any response to the complainant 's justified request. By ignoring the request, Coinbase failed to provide the required information about the XXXXs hosting the beneficiary wallets, where the complainant has made series of transactions to, respectively information that the beneficiary wallets were not hosted by a XXXX. By so doing, Coinbase does not refer to specific legal grounds, which justify their decision not to provide the required information. On its own, this hinders the consumer to make feasible use of its protected legal rights.
Company Response:
State: TX
Zip: 77407
Submitted Via: Web
Date Sent: 2024-01-19
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2024-01-18
Issue: Other transaction problem
Subissue:
Consumer Complaint: XXXX XXXX XXXX keeps stealing my assets. XXXX, XXXX, XXXX. Coinbase was taken over in 2021 and XXXX been complacent since. No home, money, phone. All I can do is pray I get some financial help do to this situation.
Company Response:
State: CA
Zip: XXXXX
Submitted Via: Web
Date Sent: 2024-01-18
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2024-01-18
Issue: Fraud or scam
Subissue:
Consumer Complaint: I opened a Coinbase account with {$1000.00} wired from my bank on XX/XX/2023. The following day, my money was transferred to another wallet, It was subsequently transferred to 4 other wallets and ended up in a Coinbase wallet.
Company Response:
State: AL
Zip: 35601
Submitted Via: Web
Date Sent: 2024-01-18
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2024-01-19
Issue: Other service problem
Subissue:
Consumer Complaint: Coinbase disabled my connected bank account for ACH transfers, which I've used for four years, as recently as XXXX and XX/XX/2023 to move US Dollars between my bank and Coinbase, both ways. Now they are forcing bank account verification with XXXX, which requires sharing my bank login with a third-party that my bank told me they explicitly do not support and do not recommend I share my bank login with them. Coinbase 's help documents suggest you can do deposit verification if you don't want to use XXXX, or if your bank doesn't support XXXX : - XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX These claims are, as far as I can tell, not true. ( I took screenshots of those articles ) Four different Coinbase customer support agents, last night and this morning, told me to use XXXX. They said XXXX verification is being shown to me because my bank has requested or required I use it. I called my bank and they said they do not support XXXX, and that giving my bank login ( username and password ) to an unapproved third party might break my contract and customer protections. So Coinbase misled me, consistently, by saying my bank was the one that must have finally " turned on their integration with XXXX '' and now I needed to use it. They told me that deposit verification was not an option for my bank. My service agreement with Coinbase includes the option to do ACH transfers at no cost. The other cash out options have fees. My recourse now is to go open a new bank account somewhere and then give XXXX access to it, and rely on that for moving US Dollars out of Coinbase. I'm looking for and not finding an announcement about this, which would have provided an opportunity to move money before these changes were implemented. And I think it's really not apparent from Coinbase 's help docs that XXXX is required for ACH transfers.
Company Response:
State: CO
Zip: 80211
Submitted Via: Web
Date Sent: 2024-01-19
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2024-01-18
Issue: Unauthorized transactions or other transaction problem
Subissue:
Consumer Complaint: on XXXX XXXX I tried to cash in some ETH ( ethereum ) from my coinbase wallet to my coinbase account. When sending the transaction the phone kept saying error. I looked up Coinbase transaction where they sent me ETH to my coinbase wallet and used that address. Well it sent the XXXX of ETH to Coinbase XXXX where they sent me some ETH prior. So it went through. The ETH went to Coinbase corporation instead of my coinbase account. They have several times changed their rules on taking out so much and limiting no more than XXXX. So now they have XXXX ETH in their Coinbase XXXX account and have ask them for it several times, like 4 times one verbal and three emails. They said their working on it and then XXXX XXXX i get an email they are closing the case. They did not return my email on not closing the case. So this is theft if they do not send me the ETH to my coinbase account.. Coinbase says they are not responsible for Coinbase wallet. and Coinbase wallet is not responsible for Coinbase. CASE # XXXX Started on XX/XX/XXXX to XXXX XXXX XXXX I have the screen shots on my phone but I do not know how to send them for a file. The Coinbase wallet address is XXXX from XXXX to XXXX ( coinbase XXXX ) they have possesion of that XXXX ETH and it is not theirs.
Company Response:
State: GA
Zip: 318XX
Submitted Via: Web
Date Sent: 2024-01-18
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A