Date Received: 2022-10-20
Issue: Fraud or scam
Subissue:
Consumer Complaint: I was scammed by a company named XXXX XXXX XXXX out of {$40000.00} that I sent through crypto currency. On XX/XX/2022 I was approached by a women named XXXX XXXX ' on XXXX XXXX stating that she had joined a XXXX group that I was a part of called XXXX XXXX. She claimed that she was getting better returns from a company called XXXX XXXX XXXX and that I should check them out. She provided the companys website called XXXX I did some research about the company but couldn't really find much online. I decided to contact XXXX 's support team and was told that funds were insured and that I would be able to withdraw at any time. On XX/XX/2022 I deposited {$900.00} into my XXXX wallet on XXXX XXXX XXXX I saw that funds were growing well so on XX/XX/2022 I sent {$1100.00} and saw even better profits. On XX/XX/2022 I deposited {$38000.00} and saw even better profits and said it was time to withdraw my funds. At that point I tried withdrawing funds but couldn't contact company anymore and that's when I new it was a scam. I immediately contacted law enforcement, XXXX XXXX, and Coinbase to report scam. I've been trying to recovery stolen money by working with XXXX XXXX and Coinbase but have had no luck. Any assistance in resolving this issue would greatly be appreciated.
Company Response:
State: FL
Zip: 34953
Submitted Via: Web
Date Sent: 2022-10-20
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2022-10-20
Issue: Fraud or scam
Subissue:
Consumer Complaint: On XX/XX/2022 - I had sent my complaint letter to COINBASE GLOBAL , 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 GLOBAL , INC never acknowledge my complaint, therefore, I have approached you CFPB and I would like to receive your assistance on this matter. Commencing on or about XX/XX/2022, I fell victim to a multi-layered scam operations run by XXXX XXXX XXXX XXXX which involved me making deposits for a total amount of XXXX USD from my COINBASE GLOBAL , INC account to fraudulent investment firm ( s ).
Company Response:
State: NY
Zip: 10305
Submitted Via: Web
Date Sent: 2022-10-20
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2022-10-19
Issue: Other transaction problem
Subissue:
Consumer Complaint: TO DUE NOT HAVING A PHONE NUMBER THAT I DO NOT SUBSCRIBE TO, OR OWN, COINBASE IS REFUSING TO ALLOW ME TO WITHDRAW FROM MY ACCOUNT. At this time the Coinbase continues, AND I MEAN, continues to engage in practices that makes it difficult to retrieve my cryptocurrency. I can not withdraw because the company is asking me for a phone number, XXXX That's right, A PHONE NUMBER! I no longer pay a XXXX to use that phone number, and I can not input my new number XXXX, unless the old phone number is on. I no longer have that old number and it is not my number, it belongs to XXXX XXXX, not me. Until this company allows me to have unfettered access to my account, I maintain that they are making it difficult to keep my XXXX XXXX.
Company Response:
State: DC
Zip: 20003
Submitted Via: Web
Date Sent: 2022-10-19
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2022-10-18
Issue: Fraud or scam
Subissue:
Consumer Complaint: I would like to draw your attention to XX/XX/2022, and XX/XX/2022 I sent my complaint letter to Coinbase, 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. General Obligation : Commencing on or around XX/XX/2022, I fell victim to a multi-layered scam operation orchestrated by XXXX ( the Fraudsters or the Company ), with the design, development, manufacturing, promoting, marketing, distributing, labeling, and/or sale of illegal and outright fraudulent investment services, all of which aim at contributing to the goal of robbing and defrauding clients through a predetermined cycle of client losses to gains. Money was transferred from my XXXX XXXX XXXXXXXX and XXXX XXXX XXXX account in the total amount of XXXX USDT and then to scammers utilizing Coinbase services.
Company Response:
State: KS
Zip: 668XX
Submitted Via: Web
Date Sent: 2022-11-02
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2022-10-18
Issue: Trouble using the card
Subissue: Trouble getting information about the card
Consumer Complaint: Coinbase has deactivated my Coinbase prepaid debit card and is refusing to reactivate. Coinbase claims I have violated their terms of service and/or the Coinbase card agreement, but refuses substantiate or provide any evidence of these violations as they are required to do so per their own user agreement ( Coinbase Card, section 1.18 final paragraph below section 1.18.7 ; attached document and also available at https : //www.coinbase.com/legal/user_agreement/united_states # coinbase-card ) : > If Card Transactions, your Card use and/or any or all Coinbase Services are restricted, suspended or terminated in this way, we will ( unless it would be unlawful for us to do so ), provide you with notice of our actions and the reasons for refusal, restriction, suspension, or termination where appropriate, with the procedure for correcting any factual errors that led to the refusal, suspension or termination. They have also refused to provide any procedure for correcting factual errors. See attached email dated XXXX containing case # XXXX. Furthermore, as described in that email, Coinbase claims this is my second violation, however I was never notified of an initial violation ; the first time my Coinbase card was disabled, it was stated as due to " suspicious activity '' and was reactivated without any notice of violation. See attached email dated XXXX. Reading through the Coinbase agreement and researching online, it seems others customers in similar situations have had similar experiences, with Coinbase providing no evidence of violation. Other customers have guessed at violations involving Money Service Businesses as listed by Coinbase in their Prohibited Use Policy ( attached and also available at https : //www.coinbase.com/legal/prohibited_use ). As set out in that document, a user can request written consent for such usage. I reached out to Coinbase with such a request, using the prescribed means of contact ( see email dated XXXX ) but support claimed I must request permission through phone support. In that call, after much back and forth, the agent told me if the card worked for a transaction, it was approved and allowed under Coinbase 's User Agreement and Card Agreement. They also advised me to try transactions and see the result and told me there was no other way to determine ahead of time if a merchant violated Coinbase 's terms of service. See attached recording of that call ( Support Call ), made with permission of the agent. I contacted support about *every* transaction made with a new merchant in the 90 days prior to my card being deactivated. Support has, on multiple occasions, claimed that not only are these transactions allowed under the Coinbase card and user agreement, but that any transaction that did would be declined. See attached screenshots of Coinbase support chats dated XXXX and XXXX. Therefore it seems impossible for me to have violated the user agreement with any transactions made. Furthermore, such conversations could also be construed as grants of written permission from Coinbase, thereby authorizing what might otherwise constitute a violation. Additionally, most of my recent transactions have been with a bank ( namely XXXX ) ; banks are specifically excluded from the definition of Money Services Businesses provided by XXXX at https : //www.fincen.gov/money-services-business-definition. I have contacted the bank that backs the card, XXXX, and have been told there is no violation or restriction from their end. I have contacted Coinbase asking to reactivate my card to no avail ( see attached email dated XXXX ). I have dealt with Coinbase in good faith and tried my utmost to adhere to their terms and get permission for transactions made on my card. From their lack of detailed response and the disconnect with the answers I received from support I must only assume Coinbase 's system of agreements and rules is set up in bad faith to try to ensnare users and create an excuse to cease card usage and reward payouts after acquiring a customer. They provide insufficient detail to avoid a violation beforehand, and refuse to even substantiate alleged violations.
Company Response:
State: CA
Zip: 94040
Submitted Via: Web
Date Sent: 2022-10-18
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2022-10-19
Issue: Fraud or scam
Subissue:
Consumer Complaint: The history of what occurred is as follows. Around XX/XX/XXXX I transferred {$500.00} from my bank account to my coinbase account and purchased XXXX XXXX, using coinbase. I then transferred this to my Coinbase wallet from my coinbase account. This XXXX XXXX was used in a mining pool with metaminer and stayed in the wallet and it stayed there. I withdrew a portion of this to ensure there was no issues with my coinbase wallet. There appeared not to be. On XX/XX/XXXX I deposited approximately XXXX USDT From my coinbase account to my coinbase wallet to store XXXX XXXX. On XX/XX/XXXX, it just disappeared and somehow, coinbase allowed this to automatically happen and allowed automatically transferring these funds to metaminer. XXXX would not release without ransom fund. I contacted metaminer and they attempted extorsion for {$30000.00} XXXX. I thereafter telephoned coinbase as I did not approve this transfer. XXXX - Call for US Coinbase Support from XXXX at XX/XX/2022 XXXX XXXX No steps were taken by the company based on my conversation and I am fully aware that Coinbase must be is aware of such nefarious site, but had nothing in place to protect clients from this. XXXX metaminer had direct access to my wallet. Coinbase, automatically transfer funds from coinbase wallet to metaminer and Coinbase denied responsibility. I have filed a follow up complaint [ Reply ] XXXX # XXXX - Complaint # XXXX and this is follow up to that. Since that time I have worked with a 3rd party payback LTD and we have drafted letters and have reached out to Coinbase on numerous occasions explaining the situation and need for them to take responsibility for this fraud as there was absolutely no protection and funds were automatically transferred to this nefarious site. Coinbase, stated although the metaminer site hacked their wallet, they had no responsibility for this and would not assist in funds retrieval.
Company Response:
State: FL
Zip: 33901
Submitted Via: Web
Date Sent: 2022-10-19
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2022-10-17
Issue: Problem with a purchase shown on your statement
Subissue: Card was charged for something you did not purchase with the card
Consumer Complaint: I was charged {$49.00} 3 times on XX/XX/2022 as a total of {$140.00} from a company called XXXX which is not even located on USA. I called coinbase the same day I was charged and many other times. They have send me only Emails promising to fix it but they never did.
Company Response:
State: NY
Zip: 11372
Submitted Via: Web
Date Sent: 2022-10-17
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2022-10-18
Issue: Fraud or scam
Subissue:
Consumer Complaint: Consumer Financial Protection Bureau ( CFPB XXXX XXXX XXXX XXXX. XXXX, IA XXXX XX/XX/XXXX This is to complain against the Coinbase URGENCY : HIGH IMPORTANCE : HIGH [ WITHOUT PREJUDICE ] I wish to practice my right as a customer of Coinbase to use your organizations service, seeking a formal, impartial investigation to amicably settle my dispute ( Ref : XXXX ) with Coinbase. To clear up the myriad of letters and correspondences I have hitherto sent to Coinbase 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 objectively and comprehensively. 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. General Obligation : Commencing on or about XX/XX/XXXX, I fell victim to a multi-layered scam operation run by XXXX XXXX which involved me making deposits for a total amount of XXXX USD from my Coinbase account to fraudulent investment firm ( s ).
Company Response:
State: NY
Zip: 11354
Submitted Via: Web
Date Sent: 2022-10-18
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2022-10-15
Issue: Fraud or scam
Subissue:
Consumer Complaint: As guided by a friend who is also a victim of this scam, first, I transferred $ XXXX to my Coinbase wallet from my XXXX account and buy the XXXX cyber currency. Under the browser tab of the Coinbase wallet app, I was referred and logged in to XXXX XXXX XXXX and transferred all of the XXXX there to " make a profit '' under their AI system. After about a month, there was an accumulated cyber currency in my account, but it forbid me to transfer them out to my Coinbase wallet. After I complained to their online customer service, they froze my account which has a {$44000.00} currency balance
Company Response:
State: MI
Zip: 48103
Submitted Via: Web
Date Sent: 2022-10-15
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2022-10-14
Issue: Other transaction problem
Subissue:
Consumer Complaint: This was a cryptocurrency transaction. Coinbase has a major security breach that caused the loss of {$5300.00}. On XX/XX/22 I was trying to move some XXXX cryptocurrency from my Coinbase XXXX to my Coinbase account ( with an eye towards cashing out ). I sent a {$25.00} test transaction to confirm that the XXXX was moving correctly from my Coinbase XXXX to my Coinbase account. That transaction was successful. Then I received a message INSIDE THE COINBASE WALLET APP asking me if i wanted to send additional funds to the same address that I had just sent funds. I clicked on the message thinking that this was simply Coinbase XXXX app providing a convenient method to repeat a transaction. Big Mistake. That message RECEIVED BY ME INSIDE THE COINBASE WALLET APP was either sent by a hacker who breached Coinbase security or a Coinbase employee trying to steal my money. So the {$5300.00} of XXXX cryptocurrency was stolen by someone who hacked the app from the inside. Not only did the hacker know that I had just sent a {$25.00} test transaction, but also knew that the COINBASE WALLET APP had basically no security. And infiltrated the app to commit this fraud. I contacted COINBASE 's customer service line within 10 minutes ( after I realized that there was a big problem ). So they knew almost immediately that there was a breach in their system. I have corresponded with their support team numerous times. Frankly, I am pretty sure that none of the customer service people even fully read the complaint. I have simply received legalist responses that never addressed the crux of the problem -- THAT COINBASE HAS A MAJOR SECURITY BREACH. I can forward the correspondence if you need it.
Company Response:
State: IL
Zip: 60614
Submitted Via: Web
Date Sent: 2022-10-14
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A