Date Received: 2023-10-17
Issue: Fraud or scam
Subissue:
Consumer Complaint: I got scammed by an online bank and sent them bitcoins for almost XXXX $ and everything was fake.
Company Response:
State: CA
Zip: 92614
Submitted Via: Web
Date Sent: 2023-10-17
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-10-15
Issue: Money was not available when promised
Subissue:
Consumer Complaint: Coinbase closed my account without explanation, resulting in XXXX XXXX ( {$1900.00} USD ) as of XX/XX/2023 being trapped in my account, unable to be accessed. I have tried to contact and get support for this issue multiple times in the past 3 months, to no avail, support representatives we unhelpful and were not able to resolve the issue.
Company Response:
State: IN
Zip: 46033
Submitted Via: Web
Date Sent: 2023-10-15
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-10-13
Issue: Fraud or scam
Subissue:
Consumer Complaint: Commencing on or around XX/XX/2021, I fell victim to XXXX multi-layered scam operations run by XXXX XXXX XXXX which involved me making deposits for a total amount of XXXX XXXX and XXXX XXXX from my Coinbase account to fraudulent investment firm ( s ).
Company Response:
State: NJ
Zip: 074XX
Submitted Via: Web
Date Sent: 2023-10-13
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-10-12
Issue: Fraud or scam
Subissue:
Consumer Complaint: Someone convinced me to borrow large cash of money totalling {$100000.00} to invest in cryptocurrency at Coinbase and transferred all the money to his possession. I refer you to the attached letter
Company Response:
State: NY
Zip: 10473
Submitted Via: Web
Date Sent: 2023-10-12
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-10-13
Issue: Fraud or scam
Subissue:
Consumer Complaint: Coinbase has withheld XXXX XXXX XXXX that belonged to my XXXXXXXX XXXX XXXX that was left to myself and XXXX XXXX for almost a XXXX. They have repeatedly lied about it and keep dodging the refund any way possible.
Company Response:
State: PA
Zip: 163XX
Submitted Via: Web
Date Sent: 2023-10-13
Company Response to Consumer: Closed with monetary relief
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-10-11
Issue: Fraud or scam
Subissue:
Consumer Complaint: Commencing on or about XX/XX/2023, I fell victim to XXXX multi layered scam operations run by XXXX, which involved me making deposits for a total amount of {$75000.00} from my Coinbase account to fraudulent investment firms..
Company Response:
State: NY
Zip: 11901
Submitted Via: Web
Date Sent: 2023-10-11
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-10-11
Issue: Other service problem
Subissue:
Consumer Complaint: Coinbase locked my account over a year ago to verify my identity. They requested some documents that I provided. From paystubs for past 3 years from different employees ( even previous ones ) to my tax documents etc... I have been collaborating with them for for a long time now and provided everything they asked for and answered every question. Every time they send a e new email with new requests. I asked them multiple times to ask all questions and request at once since everytime it takes more than a month for them to review my responses and come up with new questions! I have called their customer service too and no resolution. I am not able to do anything with my account for more than a year. And now it has come to the point that they ask one question at a time in an email after a month of their last one! They are just dragging the process for no reason.
Company Response:
State: CA
Zip: 92108
Submitted Via: Web
Date Sent: 2023-10-11
Company Response to Consumer: Closed with monetary relief
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-10-10
Issue: Other transaction problem
Subissue:
Consumer Complaint: This problem is a consequence of Coinbase locking my account for 7 months beginning on XX/XX/2022 while they dragged me through an exhaustive investigation which proved that there had been no need for an investigation. They only unlocked it in XXXX after I filed Complaint XXXX with you. Suddenly, apparently, I was no longer under suspicion. My account contained XXXX of XXXX XXXX. This past XXXX, while my account was still locked, XXXX did a conversion from XXXX to XXXX. Coinbase announced that it would not participate in the conversion, and instructed clients to withdraw their XXXX to a wallet in advance of the conversion date of XX/XX/XXXX. I was not allowed to withdraw my XXXX XXXX because Coinbase still had a lock on my account. After it was unlocked in XXXX, I withdrew my XXXX and contacted XXXX to convert it. They said it was too late and that, on the conversion date, they sent enough XXXX XXXX to Coinbase to convert all shares of XXXX XXXX that were still located in Coinbase accounts. So I redeposited my XXXX into my Coinbase account and contacted Coinbase several times trying to resolve this. As of XX/XX/XXXX, my XXXX were worth {$4200.00}. I requested Coinbase to convert my XXXX to XXXX, or to deposit {$4200.00} into my Coinbase account " since this entire snafu was caused by your locking my account and keeping it locked for seven months despite my sending you extensive financial information throughout that period. ''
Company Response:
State: FL
Zip: 33414
Submitted Via: Web
Date Sent: 2023-10-10
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-10-09
Issue: Money was not available when promised
Subissue:
Consumer Complaint: Please see my reply XX/XX/XXXX to the XXXX XXXX XXXX below in response to Coinbase 's reply XX/XX/XXXX in response to my complaint. -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- - My reply XX/XX/XXXX to the XXXX XXXX XXXX : I am rejecting Coinbase 's reply because they are responding with a half truth. While it is true that I'm now able to access my account, what Coinbase failed to disclose is that I had to hire an attorney at the cost of {$15000.00} to compel Coinbase to unblock my account. The demand letter from the attorney is attached and as well as the copy of my bank payment to the attorneys in the amount of {$15000.00}. The motion for pre-judgement writ of attachment, not uploaded, asserted a valid claim against Coinbase for breach of contract and conversion. I might add that I filed my complaint against Coinbase on XX/XX/XXXX but only now on XX/XX/XXXX ( over XXXX years later! ) is Coinbase responding to my complaint. Since Coinbase was clearly at fault, it is imperative that Coinbase refund the {$15000.00} that I was compelled to spend on attorney fees to unblock my account. My account was not accessible for over 4 months resulting in severe emotional distress. Furthermore, I spent an enormous amount of time and effort locating, preparing and presenting information to the attorneys, XXXX and Coinbase in order to unblock my account. I respectfully expect to be compensated for the damages above.
Company Response:
State: CA
Zip: 943XX
Submitted Via: Web
Date Sent: 2023-10-09
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-10-06
Issue: Fraud or scam
Subissue:
Consumer Complaint: Re : : Complaint Report - Non-Compliance with Know Your Customer ( KYC ) Obligations I am writing to formally report a concerning and potentially incompliance of " Know Your Customer '' ( KYC ) principle, and as a result, I have suffered substantial financial losses. 1. Incident Details : Company Name : Coinbase Website/Platform : https : //www.coinbase.com/ Date of First Interaction : XX/XX/2022 Financial Loss : XXXX USD Nature of the Complaint : I fell victim to a highly sophisticated fraud. I stumbled upon what seemed to be an investment platform called " XXXX XXXX '' on social media, with a website located at XXXX. In my early interactions with this platform, they assured me that a small investment would lead to significant returns through XXXX mining. However, it later came to light that the company did not possess the necessary licensing for such operations, despite claiming to offer investment opportunities. To invest, I initially transferred funds through Coinbase, a cryptocurrency exchange platform registered as a XXXX XXXX XXXX with XXXX in the XXXX, before forwarding them to the alleged investment company. This entity has been approached with the request of a refund, in light of the fact that I have a reason to believe this exchange has been negligent of current AML regulations causing me to lose a significant amount of funds. However, Coinbase refused to cooperate or take any actions regarding this matter. It is important to note that Coinbase has strict obligations regarding transaction monitoring and risk assessment. 2. Legal Basis - Know Your Customer ( KYC ) Principle : The Know Your Customer ( KYC ) principle is a fundamental aspect of financial regulation designed to prevent money laundering, fraud, and the financing of criminal activities. In the United States, it is governed by various federal and state laws, including the Bank Secrecy Act ( BSA ) and the USA PATRIOT Act. KYC procedures require financial institutions and crypto companies to verify the identity of their customers, assess the risks associated with their financial activities, and maintain accurate records of customer information. Furthermore, Part 353 of BSA imposed a reporting obligation in a case where the institution detects any known or suspected federal criminal violation, or pattern of criminal violations, committed or attempted against the FDIC-supervised institution or involving a transaction or transactions conducted through the FDIC-supervised institution , and involving or aggregating {$25000.00} or more in funds or other assets, where the FDIC-supervised institution believes it was either an actual or potential victim of a criminal violation, or series of criminal violations, or that the FDIC-supervised institution was used to facilitate a criminal transaction, and the FDIC-supervised institution has no substantial basis for identifying XXXX possible suspect or group of suspects Non-Compliance with KYC Obligations : I would like to bring to your attention that the aforementioned crypto company has failed to comply with KYC obligations as required by U.S. law. During my interaction with the company, I observed the following instances of non-compliance : Lack of Identity Verification : The company did not request or verify third identity, personal information, or financial documentation, which is a clear violation of KYC requirements. Absence of Risk Assessment : There was no indication that the company assessed the risks associated with my financial activities or provided any guidance on potential risks, exposing me to unnecessary financial harm. Inadequate Record-Keeping : The company did not maintain proper records of my information, transactions, or communication, hindering any potential investigation into fraudulent activities. Absent Transaction Monitoring Obligation : The company failed to monitor the transactions of consumers, ask further questions in relation to the transactions and detect any anomalies, such as sudden large cash deposits, frequent withdrawals, or transactions with high-risk jurisdictions. The omission of the platform shall be considered as KYC violation. Non-Compliance with Reporting Obligations : I would like to bring to your attention that the aforementioned crypto company has failed to comply with reporting obligation for the involving or aggregating {$25000.00} or more in funds or other assets, the institution has no substantial basis for identifying a possible suspect or group of suspects 3. Financial Losses : As a direct consequence of the company 's failure to comply with KYC obligations, I have incurred significant financial losses. The lack of due diligence on their part has made it impossible for me to recover my investments, and I believe their actions may constitute fraud. 4. Requested Action : I am writing to officially document our ongoing efforts to contact Coinbase, a business operating within our jurisdiction, with regards to their unlicensed business practices and their obligations regarding Know Your Customer ( KYC ) compliance. Despite our persistent attempts to initiate communication, we regret to inform you that we have received no response from the company to date.These attempts include, but are not limited to : Multiple Letters : We have sent formal letters to Coinbase outlining our concerns and requesting a response to clarify their business practices and KYC compliance status. Phone Calls : We have attempted to establish communication through multiple phone calls to the company 's provided contact numbers, but we have not received any responses or acknowledgment of our inquiries. Email Correspondence : We have sent emails to the addresses associated with Coinbase, as provided on their website and registration documents. Unfortunately, our emails have gone unanswered. Registered Mail : In an effort to ensure our communications were received, we have also sent official letters via registered mail to Coinbase with return receipts. However, no response has been received. Given the lack of response from Coinbase, we are left with no alternative but to escalate this matter further. I kindly request that you initiate an investigation into the activities of Coinbase to determine the extent of their non-compliance with KYC regulations. It is essential to protect consumers from further financial harm and to uphold the integrity of the financial system. Please keep me informed about the progress of this investigation and any actions taken against the company.I appreciate your prompt attention to this matter and your commitment to safeguarding the interests of consumers in the United States. I can provide evidence regarding the matter, if requested.
Company Response:
State: MN
Zip: 55317
Submitted Via: Web
Date Sent: 2023-10-06
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A