Date Received: 2022-09-24
Issue: Managing an account
Subissue: Funds not handled or disbursed as instructed
Consumer Complaint: I have had a Coinbase Pro account for a while. I was told that I needed to update some information on my account. I realized this was asking about a Coinbase account ( implied to be distinct from Coinbase Pro account due to different websites entirely ). I then proceeded to take steps to delete my Coinbase account, as I do not use Coinbase ( only Coinbase Pro ). The process disclosed that I had about {$2.00} USD worth of XXXX in the account, and before I could close the account, I had to withdraw or donate the {$2.00}. I, of course, chose to donate it. There was no disclosure that I would also be closing my Coinbase Pro account and forfeiting the significant sum of money that I had in the account. I reached out to Coinbase support via email ( as there is no way to speak with an actual human unless your phone number is associated with the account ), and received a wholly unhelpful response from the support team after waiting about a week. It was as if the agent did not even read my email. I promptly responded to clarify the situation and have not received a response after several days. There are several reports of this happening to other people, and clearly Coinbase has not taken steps to close this loophole in which they get to steal customer 's money.
Company Response:
State: NC
Zip: 283XX
Submitted Via: Web
Date Sent: 2022-09-24
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2022-09-26
Issue: Fraud or scam
Subissue:
Consumer Complaint: XX/XX/22 I answered suspicious email and immediately phoned Coinbase to see if it was legitimate. I was told no. I asked if account could be shut down and was told it was unnecessary as the lady was monitoring it. I have detailed records of timing of calls and names of people I spoke to. After a lengthy chat i was told all was fine. I hung up and half of my approximately {$120000.00} account was missing. I called back and hit shut down protucol. I spoke with a person and was told the account was shut down. After another lengthy chat, I looked and the remaining funds were gone. I was later told by coinbase that the account was never shut down even though my requests and calls were recorded. I have documented this several times for Coinbase. 9 months have gone by and only generic responses. I was told 3 months max response time. I have coinbase records proving time and length of calls and the multiple withdrawls made by the scammer. It is apparent to me that Coinbase fears no regulatory agency and that they think themselves a law unto them selves Can you help?
Company Response:
State: IL
Zip: 626XX
Submitted Via: Web
Date Sent: 2022-09-26
Company Response to Consumer: Closed with monetary relief
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2022-09-23
Issue: Other service problem
Subissue:
Consumer Complaint: I received an email from the Coinbase KYC team on XXXX XXXX requesting due diligence information and threatening to close my account if I did not reply. I contacted their Support team on the XXXX, and asked if the KYC request was a valid request from Coinbase. They confirmed the request, and I followed up with the KYC team, provided my w2 and answers to their questionnaire. They followed up the next day and asked me for the exact same information in an email that was formatted slightly differently. I replied and said they had already received my information and asked why they were sending this a second time. They did not answer that question. They then sent me a third request with the exact same questions on XXXX XXXX. It was as if they read my attachment and completely ignored the responses I submitted. Frustrated with their email and concerned that I would lose access to my account, I asked to be put in touch with a manager by XXXX, the XXXX, and informed them that if I did not have a reply by Friday afternoon, I would proceed with a complaint to the CFPB. The KYC team 's reply was some copy and pasted response about regulation and security and did not address my request to be contacted by a Compliance Manager. I reiterated my request to be put in touch with a manager by XXXXXXXX. It is now XXXX, and I have not been contacted by anyone other than the KYC team. Considering that I have been threatened with the closure of my account I find it highly inappropriate that no attempt was made by Coinbase to escalate my complaint or even address my issue.
Company Response:
State: GA
Zip: 30248
Submitted Via: Web
Date Sent: 2022-09-23
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2022-09-22
Issue: Fraud or scam
Subissue:
Consumer Complaint: I met XXXX XXXX on a dating app, XXXX, around XX/XX/2022. He claimed to be XXXX XXXX XXXX, of XXXX XXXX and lived in XXXX XXXX from the age of XXXX to his late XXXX ( approximately ). He also claimed to manage a team of several people to sell medical equipment ( XXXX XXXX XXXX XXXX XXXX ) for XXXX, in the XXXX area and has a house in XXXX, XXXX and XXXX XXXX, XXXX We started texting on the phone, but switched to an app called XXXX, based on his suggestion. He said that its the app he uses to talk to his family in XXXX XXXX and thus, wanted to use it to message me. As conversations continued, he mentioned that he enjoyed investing and wanted to share that with me. I expressed how uncomfortable I am with investing since Im not very familiar with it. He continued to pressure me into investing my savings in bitcoin, with his guidance. He sent me to specific website, using coinbase and XXXX XXXX XXXX XXXX XXXX The website and transactions appeared legitimate since I saw transactions change my account balance in real time. ( Unbeknownst to me, the website url changed to XXXX XXXX After several weeks, he said that the stable node ended so I should withdraw my funds to my coinbase wallet. After completing his instructions on XX/XX/2022, the sites customer service ( XXXX ) told me that I am not able to receive my capital gains until I make a tax payment to the IRS of {$110000.00} within 7 working days or I will face penalties and possible time in prison. I was very confused as I didnt expect to produce so much income in a short amount of time. After discussing the matter with XXXX, he explained that this is a normal process and that I have nothing to be concerned with. As someone that wants to believe in a man that claimed to be in love with me, I quickly gathered more money for the tax payment that I was told I am obligated to pay. We spoke over the phone ( through the XXXX XXXX ) so he could further gain my trust. He is soft spoken with an XXXX XXXX After transferring the money to avoid possible penalties and time in prison on XX/XX/2022, the sites customer service stated that they can not release my funds until they receive an additional {$50000.00} security deposit because of anti-money laundering ( AML ) regulations. After receiving the request for the security deposit, I tried to determine the legitimacy of the transaction even further and have not received responses from XXXX XXXX or the exchanges customer service. Furthermore, XXXX has since deleted the chat history in XXXX. He does not respond to his phone number ( XXXX ) that Im assuming is a virtual phone line and does not allow blocked numbers to call a phone number associated with his name in the XXXX XXXX XXXX XXXX XXXX I notified XXXX on XX/XX/2022. I reported the fraud scam to the FBI on XX/XX/2022 and then updated them on XX/XX/2022 in their XXXX website. I reported the fraud scam to the XXXX XXXX on XX/XX/2022. I have made claims with XXXX XXXX Bank regarding the wire transfers on XX/XX/2022. I reported the matter to Coinbase and Coinbase XXXX on XX/XX/2022, only to have my Coinbase account locked on XX/XX/2022. Additionally, I spoke with Coinbase 's Customer Service over the phone on XX/XX/2022 and was told that Coinbase can not take any action to assist me with the matter without being mandated by the federal authorities.
Company Response:
State: TX
Zip: 79912
Submitted Via: Web
Date Sent: 2022-09-22
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2022-09-21
Issue: Managing an account
Subissue: Banking errors
Consumer Complaint: On XX/XX/XXXX I used my Coinbase Debit card to make a purchase from XXXX XXXX XXXX, and international merchant. The payment processor for XXXX, XXXX, stated they could not process the payment, however the payment came out. I contacted XXXX and they say it would be canceled and refunded within 10 days. The payment shows canceled but the funds did not return to my Coinbase balance. XXXX is saying Coinbase is responsible and Coinbase has not resolved the issue and is not responding to my communication.
Company Response:
State: AZ
Zip: 85201
Submitted Via: Web
Date Sent: 2022-09-21
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2022-09-20
Issue: Managing an account
Subissue: Banking errors
Consumer Complaint: i rented a car in XX/XX/2022 and i had to pay a {$500.00} deposit and i used my coinbase card, when i returned the rental car the {$500.00} deposit was to be refunded but I do not see the {$500.00} balance was credited back to my account, it seems as though the {$500.00} just disappeared. I called coinbase support and was told to create a ticket i created a ticket and the ticket was ignored even after sending a follow up i did not receive any response back. completely unacceptable
Company Response:
State: FL
Zip: 33441
Submitted Via: Web
Date Sent: 2022-09-20
Company Response to Consumer: Closed with monetary relief
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2022-09-20
Issue: Other transaction problem
Subissue:
Consumer Complaint: On XXXX I accidentally initiated a debit card withdrawal in the amount of {$2700.00} on an old card on file with a Bank that was purchased twice and ultimately absorbed by XXXX XXXX ) oddly enough they still let you use the old card, so the transaction went though. I put the transaction through haphazardly and when I reached out to XXXX XXXX ( account since closed ) they said it's been rejected and will be returned to Coinbase. The transfer was initiated XXXX and has been rejected by XXXX XXXX every single business day since. Coinbase blames the XXXX XXXX and XXXX XXXX has been unable to reopen the account or capture the transaction since it's from an old debit card. I've called several times and there's been instances where Coinbase was unable to find the transaction unless I provided the withdrawal number. I've called each business everyday and get the same resolve - Coinbase : Request sent to a specialist and check your emails. I've visited XXXX XXXX twice and was informed there was nothing that could be done on there end including holding the funds and/or reopening the account. I've entered Coinbase tickets on XX/XX/XXXX and XX/XX/XXXX. This is all of my bill funds.
Company Response:
State: GA
Zip: 30328
Submitted Via: Web
Date Sent: 2022-09-20
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2022-09-20
Issue: Fraud or scam
Subissue:
Consumer Complaint: The Consumer Financial Protection Bureau ( CFPB ) XXXX XXXX XXXX XXXX, XXXX XXXX DC XXXX XX/XX/2022 This is to complain against the Coinbase Inc XXXX URGENCY : HIGH IMPORTANCE : HIGH [ WITHOUT PREJUDICE ] I wish to practice my right as a customer of Coinbase to use your organisation 's service, seeking a formal, impartial investigation to amicably settle my dispute with Coinbase. In order 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 analysing 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 to be commensurate with their legal role and responsibility to their customers. They sell a service to look after their customers, protect their money and are a financial institution that maintains a traditional relationship and way of working with its customers. During the complaints process with Coinbase, I found their communication ineffective, which further hides their conduct to management and diminishes the service offering to their clients. They are struggling to adapt their business offering in the ever-changing world of IT development. The internet is presenting a real problem which they choose to manage in a way which is not in line with rules and regulations of CFPB as well as their own internal policy and procedures sold to their clients. General Obligation : Commencing on or around XXXX XXXX, 2022, I fell victim to a multi-layered scam operation run by XXXX which involved me making deposits for a total amount of XXXX XXXX from my Coinbase account to these fraudulent investment company. When determining whats reasonable and fair, we should focus on the issue of liability ; common queries include, but are not limited to, the following : ( i ) whether Coinbase did not take notice of any rule, law, or regulation, and/or possibly missed any material elements of the relevant bylaws or codes of conduct, that may have prevented them from protecting my financial safety ; ( ii ) whether by virtue of Coinbases custodianship over my funds or by its control over them, they owed a fiduciary duty to the me and if so, whether that duty was breached ; ( iii ) whether Coinbase promoted the transaction ( s ) in question despite being aware of the nature of the transaction ( s ) in question ( iv ) whether Coinbase was in compliance with its own policies and procedures ; ( v ) whether Coinbase owed duties to myself, what the scope of those duties was, and whether Coinbase did not uphold those duties ; ( vi ) whether Coinbases conduct was unfair ; and ( vii ) whether Coinbase has within its power the ability to, and should, compensate me for the harm that has befallen me. Upon identification of such unusual or suspicious activity, it is crucial that the relevant staff member adequately describe the factors making an activity or transaction suspicious, thoroughly depict the extent and nature of this activity and properly communicate to the customer that such activity meets the relevant criteria of fraud. In providing its services to a customer, a financial institution is required by law to exercise the care and skill of a diligent, prudent organization. In this case, this means that the payment service provider should not turn a XXXX eye to known facts pointing to a real possibility that their customer is being scammed. In other words, Coinbase must have had special knowledge of what was occurring or been alerted to a real possibility of fraud taking place. The financial institution must have known or reasonably ought to have known that I was dealing with a scammer. Granted, there is room for diversity of view insofar as reasonableness is concerned. Indeed, there is a sense in which the standard of care of the reasonable person involves in its application a subjective element. However, it must be remembered that the correct test is always reasonable care in all circumstances, not average care. The fact that most people behave in a certain way may be good evidence that the conduct is reasonable, but this is not necessarily the case. Although reasonableness is a very fluid concept, all of the evidence suggests that Coinbase did not foresee the fraud and disregarded even the most obvious dangers in this respect. Situations do tend to repeat themselves and it is advisable to examine previous outcomes to see how the standard of the reasonable person should be applied, and that lessons can be learnt from the errors of the past. Coinbases Position : Coinbase did not provide us with a response even if we sent out several letters to them. Refuting Coinbases arguments from a purely logical perspective : Coinbases position is that the features of the situation at hand do not generate a genuine obligation to protect innocent and helpless victims ; they are essentially arguing that common-sense-based approaches are doomed to fail, leaving their exclusively technical account of the subject matter as the only meaningful choice. For reasons which are unclear, this extremely serious situation barely gets the attention it deserves even though ample evidence has been offered in support of this complaint. In Coinbases view, it is implied that we should not home in ( and consequently rely ) on unwritten laws, practicality, good judgement, reasonableness, sharpness, sensibleness, past outcomes, and insight, when taking appropriate precautions. To underscore, once again, such views are at odds with common sense and are wildly irresponsible. Imagine a view according to which the one and only thing that can make Coinbase morally obligated to do something is having it written down somewhere. Pursuant to this view, if Coinbase encounter the suffering of totally naive victims, they are only obligated to intervene in or remedy the situation, to the degree required by written material. This is unbecoming for a reputable establishment such as Coinbase. I have reviewed the material hereto sent by Coinbase carefully, and it unfortunately provides no response to my fundamental argument concerning the degree of care. Given its size, influence, and the resources at its disposal, this establishment clearly had a far greater capacity than an individual such as myself had, to determine the level and likelihood of risk that a client such as myself is subjected to and had a duty to intervene as they now do to query in particular out-of-pattern transactions of this kind. It is perfectly obvious that Coinbase, inadvertently, employs a subtle approach in addressing some of the key questions in a manner which neither provides me with adequate support nor protects anything other than its own interests. It is Coinbase here, who has the burden of proof, to show that it has exercised the duty of care, that is to say, that Coinbase adhered to a standard of reasonable care in relation to the matter at issue given its extensive experience compared to mine. It is Coinbase that claims that the damages which I have suffered in connection to this matter have not been reasonably foreseeable, and that my proposed degree of care is not, and has not been, commensurate with Coinbases capacity, experience, expertise, or scope of services in any way. To reemphasize, Coinbases indisputable overriding purpose is by no means to purely execute transactions in a XXXX and blank fashion, but rather to strike a balance between executing those transactions and capitalizing on its undeniably vast capabilities to protect consumers thereby enhancing market integrity. Apropos of the fluidity of the concept of reasonableness, all Coinbase has done in this regard is set up a dichotomy of having or not having the legal obligation under consideration, however, that does not go one inch toward explaining why various regulatory authorities, such as the FCA, has maintained that financial institutions can, and should, protect consumers using their systems, advanced technologies, and rich experience. Coinbase is obliged to take some action if it is sufficiently aware of a real possibility that a fraud may be being perpetuated. If you don't question its customers instructions or raise the possibility of a scam with the customer in these circumstances, it may be liable if the red flags indicate the customer is : particularly vulnerable, or if the possibility of fraud was serious or real, not just suspected. There are some recommendations to organisations for protecting customers from financial harm that might occur as a result of fraud or financial abuse ; and gives guidance on how to recognise customers who might be at risk, how to assess the potential risks to the individual and how to take the necessary actions to prevent or minimise financial harm. These recommendations are established as a general principle, the organisation should deliver a service that : 1 ) Takes a proactive approach to minimising risks, impact and incidences of financial harm and it sets out systems and tools for the prevention and detection of fraud and financial abuse. As a general point, it says organisations should ensure that all systems are developed using technologies and methodologies that are effective in the prevention of fraud and financial abuse, through authorised and unauthorised payments, thereby minimising the risk of financial harm to customers. As regards to the detection of fraud and financial abuse, it says the organisation : A ) should have measures in place across all payment channels and products to detect suspicious transactions or activities that might indicate fraud or financial abuse. It then lists the following examples of suspicious activity on customer accounts : a. multiple cheque books; b. sudden increased spending ; c. transfers to other accounts ; d. multiple password attempts ; e. logins from new devices, multiple geographical locations ; f. sudden changes to the operation of the account ; Unusual transactions are transactions whose amount, characteristics and frequency bear no relation to the economic activity of the customer, exceed normal market parameters or have no apparent legal justification. g. a withdrawal or payment for a large amount ; h. a payment or series of payments to a new payee ; i. financial activity that matches a known method of fraud or financial abuse. B ) organisations should have a process in place to ensure that staff make contact with the customer to verify the financial activity, challenge its authenticity, explain the nature of the suspected or detected fraud and discuss an appropriate plan of action. Coinbase are yet to show, or otherwise provide me with, a compelling argument that their wide-ranging experience and wealth of specialist knowledge in detecting transactional anomalies were not sufficient to avert the fraud at issue. By contrast, I have provided a multitude of sound and powerful reasons by which requiring their involvement has not only been pressingly relevant but also eminently reasonable and well-justified. Rather than empathizing with and undertaking substantial efforts to convey their knowledge of the existence of such regulations abroad and thereafter use it to protect and proactively relieve the plight of consumers who have been cheated out of their money and whose role in society is properly fulfilled, positively contributing to local economic growth, development and sustainability Coinbase adopts a rather insouciant attitude toward my financial predicament portrayed herein. I am deeply convinced that the disastrous results that I have previously elaborated upon will continue to ensue if no responsibility is adopted by Coinbase in relation to this matter. I have also thoroughly detailed why they can not simply dismiss this problem by strictly adhering to legal technicalities which, after careful reflection, struck me as being nothing more than self-interest. Indeed, it seems to me utterly unfair to disregard fragile, sensitive, and vulnerable consumers who are afflicted by such allegedly malevolent acts, thereby keeping an unjust status-quo that is corrupting our society at its core. Conclusion : Based on my analysis, and as confirmed by various authorities concerned with such matters, there is abundant evidence that forward-thinking financial institutions ought to take reasonable steps to forestall fraud, or at least mitigate its risk by using an effective risk management system, demonstrating their undisputed ability to responsibly and pre-emptively respond to questionable transactions in the digital arena. The use of such systems, largely based on newly adopted technologies aimed at effectively navigating the evolving threat landscape, is only one of a number of possible endeavours undertaken in this connection, alongside the application of past knowledge and experience related to popular fraudulent practices. Astonishingly, I am pondering how it is that despite being shown that Coinbases business conduct was insufficient insofar as background checks are concerned, they keep refuting their indisputable role and responsibility in connection with the matter herein discussed. The points that I have hitherto made are too crucial to be taken lightly. Coinbases non-observance of the fundamental principles of justice that is, to completely overlook and not even remotely try to mitigate the suffering of vulnerable consumers is inexcusable given the size of the establishment and the vast resources at its disposal as the direct result of the patronage of clients like myself. If it was, indeed, solely my responsibility, we must then believe at least one of the following clauses : a ) financial institutions have absolutely no role whatsoever in preventing and detecting fraud, b ) the fraud in question was not reasonably foreseeable, or c ) the transactions in question were not sufficiently alarming. It is extremely unfortunate that Coinbase pushes quite hard for me to believe all three of these thingsdespite evidence to the contrary. In summary, I respectively ask your organization to consider my points, given your personal and companywide obligation to provide a fair and reasonable investigation into the complaint. I look forward to your input and would gladly cooperate to reach a fair and reasonable outcome. Thank you. XXXX XXXX
Company Response:
State: CA
Zip: 90241
Submitted Via: Web
Date Sent: 2022-09-20
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2022-09-18
Issue: Problem with a purchase shown on your statement
Subissue: Credit card company isn't resolving a dispute about a purchase on your statement
Consumer Complaint: Coinbase debit card. Debiting pending transactions Then when payment went through ( another debit ) but have not refunded pending debit. 6 times for total of {$600.00}. Dates and locations as follow : XX/XX/22 XXXX XXXX # XXXX XXXXXXXX XXXX {$100.00} pending XXXX XXXX # XXXX XXXX {$100.00} ( transaction completed ) XX/XX/22 XXXX XXXX # XXXX XXXXXXXX XXXX {$100.00} pending XXXX XXXX # XXXX XXXX {$100.00} ( transaction completed ) XX/XX/22 XXXX XXXX # XXXX XXXXXXXX XXXX {$100.00} pending XXXX XXXX # XXXX XXXX {$100.00} ( transaction completed ) XX/XX/22 XXXX XXXX # XXXX XXXXXXXX XXXX {$100.00} pending XXXX XXXX # XXXX XXXX {$100.00} ( transaction completed ) XX/XX/XXXX XXXX # XXXX XXXX XXXX XXXX - XXXX XXXX - {$100.00} pending XXXX - XXXX XXXX - {$100.00} pending The above transaction were declined but and did not complete but still they debited {$100.00} each for pending. When I add up all the deposits to fund card and subtract debits. I am short {$600.00} I have contacted Coinbase several time by phone and email and have been issued a ticket number. I provided above info. I keep getting the run around. I know Coinbase laid off 18 % of their employees and are probably having trouble taking the time to review. I've seen other complaints on XXXX and one person got his problem solved thanks to you CFPB. I hope you can help. Thanks, XXXX XXXX
Company Response:
State: SC
Zip: 29212
Submitted Via: Web
Date Sent: 2022-09-18
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2022-09-17
Issue: Fraud or scam
Subissue:
Consumer Complaint: I was led to put money in a fraud ent website XXXX XXXX. I put {$600000.00} but I checked with XXXX and was told that this app is not affiliated with XXXX
Company Response:
State: CA
Zip: 94596
Submitted Via: Web
Date Sent: 2022-10-07
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A