Date Received: 2022-11-26
Issue: Fraud or scam
Subissue:
Consumer Complaint: Commencing on XX/XX/2022, I fell victim to a multi-layered scam operation orchestrated by Hackers ( the Fraudsters or the Scammers ), all of whose actions are designed to achieve the goal of robbing and defrauding innocent people in the equivalent of XXXX XXXX which were transferred from my Coinbase wallet. It is important to mention that, during the course of the aforementioned actions, I was not informed, or better say, alerted by Coinbase in any way. No authentication protocols measures of any sort were issued, no questions asked whatsoever. Furthermore, I received no notification after the transfer of funds was completed. I have strong reasons to believe that the Coinbases protections systems failed miserably in my case.
Company Response:
State: NY
Zip: 11040
Submitted Via: Web
Date Sent: 2022-11-26
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2022-11-28
Issue: Fraud or scam
Subissue:
Consumer Complaint: On XX/XX/XXXX I was solicited online for an investment training program for building wealth. I learned about the program previously through social media outlets through which I was familiar. I was directed to establish an account via XXXX to submit bi-weekly payments and to have a portion of the payments invested. I established an account with XXXX and submitted payments via this channel using Bitcoin from my Coinbase account. I began making payments to XXXX on XX/XX/XXXX and continued through XX/XX/XXXX using my personal XXXX XXXX Checking Account to transfer funds to Coinbase and then to the XXXX bitcoin address provided to me by XXXX. The XXXX platform reflected my payments and showed a portion of the payments that were being invested and their current earnings. My XXXX account balance as of XX/XX/XXXX was {$170000.00} when I requested to proceed with a withdrawal from the investment account. I never received any prompts or security concerns from Coinbase despite the financial value of the transactions. I was instructed in order to receive my investment funds I had to pay additional fees on top of the bi-weekly payments I was already making. There were two wire transfers completed from XXXX XXXXXXXX XXXX in the amount of {$25000.00} dollars sent to Coinbase between XX/XX/XXXX and XX/XX/XXXX I was told that there were multiple errors and upgrades that my account needed in order to proceed with the withdrawals and overcome the errors which were due to such a large dollar amount being transferred. These communications came from the XXXX via email. I paid the additional fees to upgrade my account and still the withdrawal transactions failed to both my Coinbase and XXXX accounts. After multiple exchanges via email, I was instructed to pursue a bank wire transfer to receive my funds. At this time an additional {$2500.00} was requested by the XXXX platform to carry out this transaction. Personally, I invested more than {$78000.00} from XX/XX/XXXX thru XX/XX/XXXX. After not receiving the funds I tried to contact a representative via phone and I could not contact anyone. It was at this time I realized I had been scammed. Currently, my XXXX account still shows a balance which reflects the additional fees submitted above with balance XXXX. There was one attempt by XXXX to submit a deposit into my Coinbase account, however the amount was negligible. This transaction occurred between XX/XX/XXXX and XX/XX/XXXX. I made efforts to file complaints and claims with XXXX XXXX and Coinbase to recuperate the funds I had lost. Several high ranking employees of XXXX XXXX XXXX and Customer Service Department stated that since Coinbase was the merchant of the Bitcoin transactions, that they hold the authority to settle this dispute. In terms of Coinbase, I have received no investigation or formal response into the matter. I have filed complaints with the XXXX Police Department, FBI XXXX XXXXXXXX XXXX, Coinbase, XXXX XXXX, XXXX and several other regulatory bodies. Of note, Coinbase has also inactivated my account online so I have not been able to communicate or conduct any transactions with their platform since the incident.
Company Response:
State: IL
Zip: 60615
Submitted Via: Web
Date Sent: 2022-11-28
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2022-11-26
Issue: Fraud or scam
Subissue:
Consumer Complaint: Coinbase letter To Whom This May Concern, Last XXXX, Coinbase, in basic terms, stole money from my account by not allowing me to execute a sale of one of my investments which lead to around {$65000.00} being taken from my account within an instant. I have done many trades and transactions with Coinbase over the years but have never run into an issue like this. Ill give a summary of what happened first then get into more detail after. The coin I was trying to sell at a locked in price would not go through their system. I had notice that people were selling the coin as it had been popular at the time and so I tried to sell it and keep my profit, however their system must have been malfunctioning because as I went to sell it would not let me. I kept trying and trying and the price kept falling as the minutes ticked by but Coinbase would not let me sell. Eventually it dropped to a price so low and the sale was actually forced through by Coinbase, causing me to lose the amount stated. I have screenshots of this that prove it and have talked to Coinbase many times over many hours where they have admitted on record to seeing the problem but they never are allowed to let me speak to someone ahead of them like a higher up. Instead they always say Coinbase will get back with you and within minutes, without fail Coinbase dismisses my case. Despite all the evidence I have and their admissions to seeing the problem. The original intended sell was of XXXX of XXXXXXXX XXXX eventually went through on face value but in reality just sat in my account despite saying it successfully went through with no error codes. On XX/XX/XXXX at XXXX I sold XXXX XXXX and it shows " Completed '' with all of the information that goes with a completed sale, EXCEPT I later found out that it wasn't completed for some reason, due to your system ( Not my fault, nor my responsibility ). After discovering Coinbase 's mistake I kept trying to sell the XXXX XXXX while it continued to fall in value resulting in a loss of profit in excess of {$65000.00}. Should I not trust when Coinbase says an order has " Completed '' that it actually has completed? When I see an order is completed I feel I should be able to close my computer, go on a XXXX vacation and rely that the order actually completed. This is a very concise letter explaining everything but I can go into far greater depths than this in explaining what happened. I have reached out to a representative of the FTC and he told me that this is a common occurance and to reach out on here for a resolution. Thank you
Company Response:
State: TN
Zip: 378XX
Submitted Via: Web
Date Sent: 2022-11-27
Company Response to Consumer: Closed with monetary relief
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2022-11-26
Issue: Getting a credit card
Subissue: Sent card you never applied for
Consumer Complaint: XX/XX/2022, Coinbase sent me a Visa debit card. I have never created an account with Coinbase. Immediately, I tried to contact Coinbase support, but their system blocked me from speaking to anyone because I have no account with them.
Company Response:
State: VA
Zip: 22312
Submitted Via: Web
Date Sent: 2022-11-27
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2022-11-23
Issue: Other transaction problem
Subissue:
Consumer Complaint: I have had an ongoing issue with Coinbase Inc. I reached out to them because I am blocked and can not access my own account. They admitted that there are unauthorized charges on my account, yet they refuse to do anything about it. The day I reached out was XX/XX/2022 so I could view the transactions for myself, and they won't even provide the information to me. I have {$13000.00} worth of unauthorized charges on my account. I can provide my bank statements with all of the charges if need be.
Company Response:
State: MO
Zip: 65807
Submitted Via: Web
Date Sent: 2022-11-23
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2022-11-22
Issue: Fraud or scam
Subissue:
Consumer Complaint: URGENCY : HIGH IMPORTANCE : HIGH [ WITHOUT PREJUDICE ] I wish to practice my right as a customer of Coinbase Inc. to use your organizations service, seeking a formal, impartial investigation to amicably settle my dispute with Coinbase Inc. In order to clear up the myriad of letters and correspondences I have hitherto sent to Coinbase Inc. respecting my complaint, I believe it will substantially strengthen both my case and your understanding, by taking a deeper look at the happenings of my case and analyzing the relevant facts in an objective and comprehensive fashion. It is crucial to note that I have been manipulated, socially engineered, and coerced to engage these fraudulent criminals. Much to my embarrassment, I recognize that I am the victim of an investment scam. My complaint to the CFPB has arisen as I do not consider, by any stretch of the imagination, the conduct of Coinbase Inc. to be commensurate with their legal role and responsibility to their customers. They sell a service to look after their customers, and protect their money and are a financial institution that maintains a traditional relationship and way of working with its customers.
Company Response:
State: CA
Zip: 92630
Submitted Via: Web
Date Sent: 2022-11-22
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2022-11-21
Issue: Money was not available when promised
Subissue:
Consumer Complaint: I " invested '' {$7600.00} in XXXX, XXXX XXXX. My " investment '' went up to {$13000.00} On this date I tried to withdraw {$8000.00}. They required me to deposit {$2200.00} to cover taxes. " The tax needs to be paid by the user separately and can not be deducted from the account balance. '' " Since user funds are stored in the block chain we have no right to deduct any fundfs from users, so you need to pay sepqarately and the tax is a system audit. You need to pay taxes before withdrawing money back to your wallet. '' " Due to the special nature of cryptocurrency, it is easy tfr users to use it for tax evasion, so the profits earned from trading on the exchange are collected by the exchange, and submitted to the IRS, and then a tax 1099 document is issued to the user. ''
Company Response:
State: WA
Zip: 98607
Submitted Via: Web
Date Sent: 2022-11-21
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2022-11-19
Issue: Fraud or scam
Subissue:
Consumer Complaint: On XX/XX/2022 I noticed some fraudulent charges on My Coinbase account from my Coinbase debit card. The charges were from XXXX XXXX for {$67.00} and there were at least XXXX charges from XXXX. I contacted Coinbase to report this and at the same time I locked my Coinbase Debit Card. On the same day XX/XX/2022 my wife attempted to call me to find that the voicemail was going to a XXXX XXXX phone account. At this point on Monday XX/XX/2022 and Tuesday XX/XX/2022 my XXXX cell phone was still active. I was able to place phone calls. On Wednesday XX/XX/2022 morning I went to look at my Coinbase account and was unable to log in and my cell phone was unable to receive or place phone calls. I called Coinbase the crypto exchange in which I have funds invested. To find that the customer service representative was unable to locate the account based on the e-mail used which was XXXX and also my cell phone number. It seems that who or what ever hacked into my Coinbase account had changed all the log in information. The Coinbase account had {$6400.00} stolen and according to the Coinbase representative the money was deposited into a bank account. But not into my bank account. In addition, I contacted XXXX and had my compromised cell service restored by changing the sim card number. In addition to removing {$6400.00} from my Coinbase account the XXXX removed a total of {$820.00} from our XXXX account which would have been deposited into the account that was stolen. the debited {$820.00} had Coinbase as the receiving account. The XXXX banking information was in my stolen account using the XXXX debit card number. XXXX was notified and the {$820.00} was credited back into the XXXX checking account. The debits cards were canceled and a freeze on any Coinbase withdrawals was created indefinitely. The complaint number for Coinbase is XXXX. Coinbase has stated that the theft was escalated
Company Response:
State: MA
Zip: 018XX
Submitted Via: Web
Date Sent: 2022-11-20
Company Response to Consumer: Closed with monetary relief
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2022-11-19
Issue: Fraud or scam
Subissue:
Consumer Complaint: 1. I first became a customer of Coinbase in XX/XX/XXXX, at which time I purchased XXXX assets. 2. I have been a customer in good standing of Coinbase since that time. I have bought, sold, and traded various cryptocurrencies as supported on the Coinbase exchange. 3. I have entrusted Coinbase with custody of my crypto ( i.e. hosted wallets- via Coinbase.com, Coinbase XXXX and Coinbase XXXX XXXX ) until XX/XX/XXXX. XXXX. Recently, starting in early XX/XX/XXXX, I began transferring cryptocurrencies off of Coinbase ( hosted wallets ), and onto a personal " hot wallet '' ( self-custodied ). a. It should be noted that Coinbase generally supports this practice, and even encourages it in some cases. XXXX. On XX/XX/XXXX, I began to notice unexpected restrictions/limitations placed on my account. Specifically, I was blocked from linking my Coinbase XXXX ( hot wallet - self-custodied ) to my Coinbase.com account. XXXX. On XX/XX/XXXX, I filed a Support Request with Coinbase - describing the issue per previous : Case # XXXX. I received only an auto-reply email from Coinbase acknowledging this. XXXX. At some point, I was able to re-verify my identity with Coinbase and continue with account activity. XXXX. On XX/XX/XXXX, as per previous, I moved ( sent ) assets valued at {$82000.00} USD total from the Coinbase-hosted wallet to my personal wallet ( external ). XXXX. On XX/XX/XXXX, I moved ( sent ) an additional assets off of Coinbase, as per previous, valued at {$3800.00} USD total. XXXX. On XX/XX/XXXX, I moved ( sent ) an additional assets off of Coinbase, as per previous, valued at {$4800.00} USD total. 11. On XX/XX/XXXX, following previous, my Coinbase account was abruptly disabled ( by Coinbase ) with the message " account temporarily disabled ''. i.e. I was completely unable to access ( log in ) to my account whatsoever. I proceeded to file another Support Request with Coinbase : Case XXXX XXXX. I again received an auto-reply email. XXXX. I contacted Coinbase support via social media ( XXXX, XXXX ) as well, to direct them to properly escalate Case # XXXX. XXXX. On XX/XX/XXXX, Coinbase responded via email with instructions to once again reverify my identity ( ID + selfie photo verification ). The email from Coinbase specifically states the following : " Within XXXX hours of your access being restored, you should be able to complete buy and sell transactions. After XXXX hours, you should have full trading capabilities. For your security, sends will be XXXX on your account until the full security period has passed ( identity verification plus XXXX hours ). XXXX. On XX/XX/XXXX, I completed steps per previous, and regained ability to access ( log in to ) my account, but with all functions ( buy, sell, trade, transfer ) still restricted/blocked. XXXX. From XX/XX/XXXX to XX/XX/XXXX, I continued to communicate via email with Coinbase, as the " temporary restrictions '' were not lifted in the timeframe they stated. XXXX. On XX/XX/XXXX, Coinbase emailed me, including the following : " XXXX determined that we will need to review your account further. '' Once again ( third time ), I was requested to reverify my identity. XXXX. Per previous, on XX/XX/XXXX, I attempted to follow the instructions again, however, my account was again fully blocked - i.e. I could not log in yet again. XXXX. On XX/XX/XXXX, I communicated via XXXX direct messages with Coinbase XXXX. The agent suggested the following reason for this further disablement of my account : " there is currently an ongoing incident that is preventing customers from completing the XXXX process. Our engineers are working to resolve this ASAP. '' XXXX. On XX/XX/XXXX, I proceeded to contact Coinbase Support via Phone, opening another Support Request : Case # XXXX. During the call, I explained all context. The agent suggested that the ID verification cycle was because " my driver 's license is a California one, but you originally opened your account with a driver 's license from a different state '' - to which I explained that I had moved to California in XXXX. My account was unlocked ; I could log in again, however, the restrictions on actions were still in place ( i.e. I can not buy, sell, trade, transfer ). The agent then said he had fully escalated my case, it would be manually reviewed & these restrictions would be lifted, and that I should watch my email closely for an imminent update. XXXX. It should be noted that the explanation of account holds & restrictions from the Coinbase agent via XXXX was not consistent with the one from the agent via Phone. XXXX. Early on XX/XX/XXXX, I requested an update from Coinbase via Case # XXXX, across various support channels. I have not heard any response as of XX/XX/XXXX. At this point, I still can not actually access my assets custodied by Coinbase- I can see balances only, but can not perform any useful actions. The assets that remain tied up are valued in total at {$6200.00} USD currently. Despite my patient, clear, cooperative attempts to come to a resolution with Coinbase, they have not effectively cooperated in turn ; rather, they have created an endless cycle of tasks amounting to no useful consequence. No reasonable explanations have been given for the random account restrictions, and no useful resolution or remediation has been provided by Coinbase. This is why I am formally filing a complaint against Coinbase.
Company Response:
State: CA
Zip: 90031
Submitted Via: Web
Date Sent: 2022-11-19
Company Response to Consumer: Closed with monetary relief
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2022-11-18
Issue: Fraud or scam
Subissue:
Consumer Complaint: Dear Sir / Madam, I would like to draw your attention to XX/XX/XXXX- I had sent my complaint letter to Coinbase Inc, in which I clearly stated how this scam has affected me personally, psychologically and financially. I am afraid I have had to go through so much " bureaucracy '' thus far in order to catch their attention to my concerns. This really doesn't show their complaints department in a good light, to say the least ; and certainly, does not contribute to my overall satisfaction and peace of mind. My complaint is against the bank that did not do its job properly ( could not prevent/foreseen fraud and could not conduct a proper investigation ) and not against the vulnerable customer who fell victim and lost all the savings due to the misconduct of the bank. I feel very distressed and cheated, all because no one took action immediately and practice their duty of care, therefore I only request what I believe to be rightfully mine, as all institutions were more than negligent in protecting my account and handling the complaints. I comprehensively provided explanations and proof to my claim, even so, Coinbase never acknowledge my complaint, therefore, I have approached you CFPB and I would like to receive your assistance on this matter. Overview : It is well established that victims with some characteristics of vulnerability may be more likely to fall victim to scams, including misleading Online financial advertisement. They may be specifically targeted through unsolicited approaches, more trusting or more likely to be persuaded to disclose personal financial details. It is evidently proven that scam victims have relatively little freedom of reactivity, they respond immediately, instinctively, and invariably to the specific demands of the perpetrator under psychologically pressurising circumstances that the perpetrators themselves created to manipulate said victims ( myself in this instance ). Being able to consciously refrain from reacting in accordance with the scammers instructions is extremely difficult and sometimes impossible once theyve got a hold of your funds. Likewise, financial institutions should consider their role in society and the responsibility that falls upon them to ensure the integrity of the financial markets, both when sending and receiving money. Firms have an obligation under the Anti-Money Laundering Regulations to take appropriate measures to ensure that their employees and agents are made aware of the law relating to money laundering, and XXXX financing ( and to data protection ), and are regularly given training in how to recognize and deal with transactions and other activities which may be related to money laundering or XXXX financing. Please refer my attachments.
Company Response:
State:
Zip: XXXXX
Submitted Via: Web
Date Sent: 2022-11-18
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A