Date Received: 2022-08-30
Issue: Other features, terms, or problems
Subissue: Other problem
Consumer Complaint: I have a debit card with Coinbase. There were 4 FRAUDULENT transactions made with my debit card. I alerted Coinbase real time when 2 transactions of XXXX and XXXX were made, when I received alerts on the mobile device. They were still pending when I alerted Coinbase. They never did anything about it. I also open a ticket at the same time. There are screenshots of it. Nothing happened for a few days, so I asked for the status and was told ticket was never opened ( even I have screenshots of the ticket number from the chat ). They opened new ticket. Nothing happened. I contacted them via twitter and someone told me they are working on it and they started to ask me questions that were already answered in the email chain. And it has been going on. Same questions and no progress whatsoever. Please help to recover my money and would be nice if Coinbase is punished for lack of the required support by USA laws XXXX XXXX
Company Response:
State: FL
Zip: XXXXX
Submitted Via: Web
Date Sent: 2022-08-30
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2022-08-30
Issue: Other service problem
Subissue:
Consumer Complaint: I started using Coinbase to buy crypto currency in 2020 or so. I had some trouble early on with getting a promo offer, but eventually support finally made it right. About a year later, I recommended someone and never got the referral bonus but couldn't concretely prove it and it wasn't worth suffering through the support system to get it. In XXXX, I changed my name and began working with XXXX to get my name and information updated on my account and my account verified. I have been struggling ever since. I was asked to upload my documents dozens of times. I finally had to escalate angrily to get that one part done. Then my account wasn't verified and I was unable to earn interest for months and it took months to get that straightened out. I tried to take advantage of other promotions and staking, but couldn't because the level of support was so terrible. I would ask a question, they would never answer and ask me to trouble shoot. Never read the email, just blanket trouble shoot. So frustrating. I opened a complaint with XXXX, they recommended me to FTC and other agencies because they couldn't resolve with Coinbase. Coinbase has a very specific process on how to handle a complaint on their website- I followed the formal complaint process, but they closed it saying I had an open support ticket and that I needed to close that prior to opening a formal complaint. I replied that I am opening a formal complaint due to the fact that I have spent the past several months fruitlessly struggling with support without any resolution and am escalating the way they design and was shocked to find them ignore the formal complaint to the already terrible service. They run you around in endless circles with no desire to actually resolve any issues. I don't believe they intend to resolve any issues- in fact, I believe that they purposely avoid solving issues to avoid paying out any advertised incentive. I don't know if it's false advertising, but it's certainly not following through with promised incentive. And the customer service is the absolute worst in the business. I have emails that can be viewed if there is somewhere to forward them.
Company Response:
State: MO
Zip: 631XX
Submitted Via: Web
Date Sent: 2022-08-30
Company Response to Consumer: Closed with monetary relief
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2022-08-24
Issue: Confusing or missing disclosures
Subissue:
Consumer Complaint: Coinbase global says I dont have an account Ive contacted them several times since XX/XX/2021 its about those guys the Feds arrested
Company Response:
State: TX
Zip: 775XX
Submitted Via: Web
Date Sent: 2022-08-24
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2022-08-24
Issue: Other transaction problem
Subissue:
Consumer Complaint: I have been a customer of Coinbase since XXXX. I have invested over XXXX in bitcoin. I always have strong password ( 11 characters long with uppercase, lowercase, number and special character ) and XXXX verification to protect my account. On XX/XX/XXXX, my account got compromised and I lost over XXXX worth of bitcoin. I reported to Coinbase and locked my account as instructed. After my account was recovered and reactivated, I changed my password and added XXXX XXXX. On XX/XX/XXXX, my account got compromised again. This time i lost over XXXX worth of bitcoin. Coinbase kept blaming on me not protecting my account and refused any responsibility.
Company Response:
State: CA
Zip: 95825
Submitted Via: Web
Date Sent: 2022-08-24
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2022-08-24
Issue: Managing, opening, or closing your mobile wallet account
Subissue:
Consumer Complaint: This is for coinbase.com My account is under the email XXXX I sold my bitcoin virtual currency for {$770.00}. It now reflects in the USD balance but now I am unable to withdraw it to my bank account. Coinbase support is utterly useless. Please help me get my money back. I have paid a lot in fee to cash out.
Company Response:
State: MI
Zip: 48346
Submitted Via: Web
Date Sent: 2022-08-24
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2022-08-24
Issue: Fraud or scam
Subissue:
Consumer Complaint: I found this scam company posing as XXXX XXXX ( a clone if you will ). And decided to invest in this fraudulent company on their instructions. Due to Coinbase 's negligence i lost XXXX XXXX and XXXX XXXX. I transferred money from my coinbase account on their instruction.
Company Response:
State: CA
Zip: 91601
Submitted Via: Web
Date Sent: 2022-08-24
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2022-08-23
Issue: Fraud or scam
Subissue:
Consumer Complaint: I wish to report federal violations on the part of the cryptocurrency exchange Coinbase. I have an individual investor account with Coinbase registered under my name and email address as listed with the CFPB. I am a United States citizen currently living in XXXX, and my Coinbase registration is under my U.S. mailing address. The violations I wish to report are : 1. Coinbase has engaged in fraudulent conduct by using misleading information to induce me to invest in cryptocurrency, and then refusing to deliver the assets I purchased through its exchange. 2. In multiple online conversations between me and Coinbase representatives, Coinbase has explicitly refused to tell me why it will not deliver my purchased assets. This is a complete lack of transparency. 3. Immediately after I informed a Coinbase representative that I had filed formal complaints with the SEC and XXXX, Coinbase completely locked me out of my account and made it impossible for me to communicate online with its staff again. 4. Coinbase appears to be XXXX against me for being a U.S. citizen abroad. Since I currently reside in XXXX, my internet IP address shows as being in XXXX. Coinbase allows non-U.S. citizens living abroad with some base in the U.S. to invest in its exchange, so its system flags U.S. citizens abroad simply for being U.S. citizens. This is a form of XXXX on the basis of national origin, which violates federal law. The sequence of events is as follows ( I am using dates in the time zone of XXXX XXXX ) : 1. XX/XX/2022 : I opened an account with Coinbase online. 2. XX/XX/2022 : After the initial verification process, Coinbase sent me an email message saying : Youre ready to invest. Weve verified your account. Youre all ready to invest in XXXX. This message conveyed the false impression that I was fully verified and would be permitted to invest in and conduct transactions with cryptocurrency. Phrases like Youre all ready to invest in XXXX are clearly inducements to purchase assets. 3. XX/XX/2022 : Coinbase sent the identical email again : Youre ready to invest. Weve verified your account. Youre all ready to invest in XXXX. 4. XX/XX/2022 : I purchased {$3000.00} worth of XXXX on Coinbase ( minus the transaction fee ) using funds in my XXXX account, which I had linked to my Coinbase account. 5. XX/XX/2022 : I received an email confirmation of this XXXX purchase saying Your XXXX is now available to trade on Coinbase and You can send your XXXX off of Coinbase starting on XX/XX/2022. 6. XX/XX/2022 : I purchased another {$3000.00} worth of XXXX on Coinbase ( minus the transaction fee ), also via my linked XXXX account. 7. XX/XX/2022 : I received an email confirmation of this second XXXX purchase saying Your XXXX is now available to trade on Coinbase and You can send {$1000.00} USD in XXXX off of Coinbase immediately, and the rest starting on XX/XX/2022. 8. XX/XX/2022 : I attempted to purchase another {$4000.00} worth of XXXX on Coinbase through my XXXX account, but this time Coinbase blocked me from doing so and said my account was restricted. 9. XX/XX/2022 : I contacted XXXX customer support to ask why a restriction had been placed on my account. The email reply from Coinbase said my account needed further verification ( even though Coinbase had earlier claimed my account was verified ), and that I needed to verify my identity further. I then carried out XXXX instructions for this verification, which included uploading my U.S. passport and having Coinbases system take a webcam picture of me holding up a paper with the handwritten words For Coinbase Trading along with the current date. 10. XX/XX/2022 : I received an email from Coinbase saying : We have now reviewed and verified the identity documents you uploaded. However, even though Coinbase said my identity had been verified, the same email said : After taking a look at your account, we see that you're not eligible to purchase cryptocurrency or add cash using your linked payment methods. You may also have difficulty linking a new payment method. This email also said : You will receive a notification email if we're able to restore your purchasing ability. Please note, your review may take up to 14 days to complete. Coinbase had previously allowed me to use my linked XXXX account to purchase XXXX on XX/XX/XXXX and XXXX, but now was saying I was not eligible to use it. 11. XX/XX/2022 : I sent a reply to the above email from Coinbase but immediately received a reply saying : In an effort to respond more rapidly to support requests, direct emails to this address are no longer enabled. To get a response from our support team, please visit the following page to submit a request [ a Coinbase website link was provided ]. Therefore, I could no longer contact Coinbase via email and needed to use its online support chatting system through my account. 12. XX/XX/2022 : I tried to withdraw {$4000.00} worth of the XXXX I had purchased on Coinbase. However, I was blocked from doing so, even though according to the above messages from Coinbase, I should have been able to move {$4000.00} worth of my approximately {$6000.00} of XXXX off the exchange by this date. At this point, Coinbase had only told me there was a purchasing restriction on my account, but had never said I was also restricted from withdrawing my purchased assets. 13. XX/XX/2022 : I had an instant-message conversation on the Coinbase website with a customer support staffer named XXXX. In this conversation, XXXX told me I was restricted from both purchasing assets and withdrawing my already purchased assets. Furthermore, XXXX said the current 14-day review was only to determine whether I was eligible to continue purchasing, not to determine whether I could withdraw my XXXX. XXXX said I could not even apply for a review to lift the hold on withdrawing my XXXX until XX/XX/XXXX, about six weeks after my first XXXX purchase. XXXX asked me to answer questions about my intention in opening the account, whom the account was for, and the destinations of withdrawals. I answered that the intent was to invest in cryptocurrency, the account was only my own, and destinations of withdrawals would be my bank account for XXXX XXXX and either my electronic wallet or another exchange for cryptocurrency. I asked XXXX why Coinbase had restricted my account. XXXX refused to say why and said Coinbase could not disclose the reason. XXXX said I could only cash my XXXX in for XXXX XXXX ( USD ) and withdraw that, but I could not move my XXXX off Coinbase. I was dumbfounded at that moment, so I just said the review was fine only if Coinbase communicated transparently and professionally about it, otherwise I would file a federal complaint and publicize the matter on the web. XXXX and I mutually ended the conversation at that point. After researching federal regulations and thinking further about the matter, I determined that Coinbase had, by legal definition, committed fraud, and that I could not accept the situation. Coinbase had misled me into investing at the beginning. Even though Coinbase said I could cash out my XXXX as USD, I would not have invested with Coinbase had I known I would not be able to withdraw my XXXX to my electronic wallet. By saying XXXX all ready to invest in XXXX at the beginning, Coinbase had misled me into thinking I was sufficiently verified and induced me to invest on its exchange, and then refused to deliver my purchased assets. I also reasoned that Coinbase was XXXX against me because I am a United States citizen living in XXXX. 14. XX/XX/2022 ( past midnight on the night of XX/XX/XXXX ) : I had an instant-message chat with another Coinbase representative, XXXX. XXXX I asked XXXX to tell Coinbases management it had committed fraud by misleading me into investing at the beginning, and that it was discriminating against U.S. citizens abroad merely for being U.S. citizens. I then said that if Coinbase did not release my XXXX and lift the restriction on my buying more cryptocurrency by the morning of XX/XX/XXXX, I would report these violations to the relevant federal regulatory bodies and set up a website to publicize the matter. XXXX then rapidly copied and pasted a flurry of conflicting and flip-flopping company replies. First, XXXX claimed the restriction on my account was just the normal waiting period between buying cryptocurrency and its availability for withdrawal and said I would be able to withdraw my XXXX on XX/XX/XXXX, which contradicted what XXXX had said ( that I could not even apply for a review to determine whether I could withdraw my XXXX until XX/XX/XXXX ). I told XXXX that XXXX had said otherwise. Then XXXX changed the answer and said I had to wait all the way until XX/XX/XXXX to apply for a review, which was even later than what XXXX had said ( XX/XX/XXXX ). XXXX further reiterated that Coinbase refused to disclose any of its reasons for restricting my account. I then told XXXX that XXXX had said there was an initial 14-day review for determining whether I could purchase further, and that I could apply for a review earlier than XX/XX/XXXX ( XX/XX/XXXX ). I further said that I was taking screenshots of this conversation. XXXX then changed the answer again and claimed the reason for the hold on my account was that my ID still needed verification. I replied that I had already gone through this verification and that Coinbase had said in its e-mail that my ID had been verified. I then told XXXX that s/he was recklessly giving me pre-written company replies. At this point XXXX asked for some time to check my account again, and then said I needed to wait until XX/XX/XXXX even to apply for a review to be allowed to do any cryptocurrency transaction, and then abruptly signed off and closed our conversation before I could reply. 15. XX/XX/2022 ( past midnight on the night of XX/XX/XXXX ) : Having received no communication from Coinbase since my chat with XXXX and being still unable to withdraw my XXXX or purchase more assets, I initiated a brief instant-message conversation with a third Coinbase representative, XXXX. I told him to remind Coinbases management that if it did not remove the restrictions on my account, I would report the issue to the relevant federal agencies. I then ended this conversation because XXXX and XXXX had mostly just copied and pasted ready-made company-written replies that evaded the key issues, often repeating each other, and I did not want to see copy-and-paste messages for the third time. All I wanted in this conversation was to give Coinbases management a final chance to rectify the situation before I reported the issue to federal authorities. 16. XX/XX/2022 : There was no change in my Coinbase account restrictions, so I submitted complaints about this situation to XXXX ( File # XXXX ) and the SEC ( File # XXXX ). XXXX. XX/XX/2022 ( early XXXX/before XXXX ) : With no change in my account restrictions, I had an online conversation with a Coinbase customer support staffer named XXXX, which was later taken over by a person named XXXX. I asked XXXX to confirm that Coinbase had prompted me to invest and then was refusing to let me withdraw my purchased assets under the review. XXXX confirmed this, which is a direct admission of violating federal law ( and I have a screenshot of this ). I later asked XXXX whether I was allowed to deposit XXXX into my Coinbase account. XXXX said I was currently allowed to deposit XXXX into my Coinbase account but not withdraw it. This is essentially admitting that Coinbase will steal XXXX ( I have a screenshot of this as well ). Like other Coinbase representatives, XXXX refused to say why Coinbase had placed restrictions on my account. XXXX pasted a pre-written company statement that my account was under review. I told XXXX I had previously been told this review would be for 14 days but that it had now been four weeks with no communication from Coinbase. XXXX replied that my account had actually been placed on a 30-day review, which contradicted not only XXXX claim that the review would be for 14 days but also XXXX claim that a review could not even start until XX/XX/XXXX. XXXX said I still needed to answer some questions about my account. However, the questions XXXX gave me were essentially the same questions I had answered for XXXX on XX/XX/XXXX ( worded a little differently but still asking about my intention, whether anyone other than I was involved with the account, and the destinations of withdrawals ). I told XXXX I had already answered these questions in my conversation with XXXX. I told XXXX to look at the transcript of my conversation with XXXX to see my answers to those questions. At this point the chat window suddenly said my support agent was no longer available, and then XXXX took over for XXXX. XXXX acknowledged that I had responded to the questions but still asked about destinations of future withdrawals. I told XXXX to find my response in the transcript of my conversation with XXXX. XXXX then copied and pasted into our chat the answers I had given XXXX and asked me to confirm that these were my answers. I confirmed they were. XXXX said he was referring the matter to the relevant department, and that I would receive email correspondence from that department later. I then informed XXXX that I had submitted complaints to the SEC and XXXX and gave him the file numbers, and I said that I would be happy to tell these authorities the matter was resolved if Coinbase rectified the situation ASAP. I then said I would wait for Coinbases email, and XXXX signed off and closed the chat. 18. XX/XX/2022 : An hour and a half after the end of my conversation with XXXX, I received three automated and contradictory emails from Coinbase. The first email said : For security reasons, your Coinbase account has been locked. While it is locked, no one ( including you ) will be able to perform any activities or transactions from the account. The second e-mail said : Your photo ID has been verified. You're one step closer to investing in crypto with Coinbase. Sign in to check prices, add a payment method, finish setting up your account, and more. The final e-mail said : All account restrictions have been removed, and you may resume using your Coinbase account immediately. In sum, the final two e-mails from Coinbase said my ID was verified, all restrictions were lifted, and I could use my account immediately. However, when I then tried to log into my Coinbase account, the system told me my account was locked and that I needed to go through an ID verification process yet again to unlock it. This now makes me completely unable to chat online with a Coinbase representative because one needs to be logged into ones account to do so. Furthermore, since Coinbase has stated that it will no longer receive messages at its customer help email address, I can no longer send email to Coinbase. Thus, Coinbases final email to me told a falsehood ( that I could immediately use my account without any restrictions ). Now I am in an even worse situation than before my last conversation with Coinbase, cut off from even seeing my asset balance or communicating online with Coinbase. Although Coinbase provides instructions on how to re-verify my ID when I try to log in, there is no reason to trust that this will resolve the issue given Coinbases conduct thus far, including its fraudulent invitation to invest, multiple flip-flops concerning my account status and reviews, twice saying my ID was verified but asking for another verification, and reneging on its final written word that I could immediately resume using my account without restrictions. Furthermore, I will not validate Coinbases illegal, unethical, and XXXX conduct by repeating an ID verification when Coinbase has already and admittedly verified my identity. Coinbase has no right to discriminate against a U.S. citizen abroad while refusing to be transparent about its actions. However, I am willing and happy to verify my identity with any federal officer who may need it when reviewing this case. In summary, Coinbases malfeasance consists of the following : 1. Fraudulently saying it had verified my account and inducing me to invest by saying I was all ready to invest in crypto. 2. Refusing to deliver the assets I purchased on its exchange. 3. Still claiming my identity needed to be verified after twice saying it had been verified. 4. Giving multiple contradictory and false messages about the status and reviews of my account. 5. Twice asking me essentially the same set of security questions. 6. Discriminating against a U.S. citizen abroad simply for being a U.S. citizen, hence violating federal law against discrimination on the basis of national origin. 7. Explicitly refusing on multiple occasions to say why it restricted my account and withheld delivery of my purchased assets, which is a grave lack of transparency. 8. Locking me out of my account and cutting me off from my assets while falsely claiming I could immediately use my account with all restrictions lifted, and cutting off online communication with me, right after I informed it that I had filed complaints with the SEC and XXXX. I can provide the following documentation : 1. Email correspondence from Coinbase including account confirmation, invitation to invest, XXXX purchase confirmations ( showing amounts of payments from XXXX ), both ID verification confirmations, account restriction notice, notice of lifting of all account restrictions, and notice that the account is now completely locked. 2. Extensive screenshots of each online message chat I have had with Coinbase representatives on the Coinbase website, and the full Coinbase-generated PDF transcripts of all of these conversations ( which show the few parts missing from the screenshots ). 3. Screenshots of my Coinbase account before it became locked, showing my XXXX balance and my being restricted from sending XXXX off the exchange or purchasing further. 4. A screenshot of my attempt to log into my Coinbase account after the final email from Coinbase, showing that I am now completely locked out of the account and required to do another ID verification.
Company Response:
State: CA
Zip: 91406
Submitted Via: Web
Date Sent: 2022-08-23
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2022-08-21
Issue: Fraud or scam
Subissue:
Consumer Complaint: XX/XX/XXXX my coinbase account was compromised. This happened by my email getting hacked and my cell phone number then getting ported out or sometimes called sim card swap. I contaced coinbase to let them know, I received an email immediately saying my account had been locked for security reasons. I was asked to submit photo **s and other requisite information for security and told VIA EMAIL that my account should be re-activated by XX/XX/2022, I called and spoke to 'customer service ' Their customer service is a sham, unable to escalate or provide any meaningful solution. The 'agent ' i spoke with then sent me another link to re-upload my ** data via a 'XXXX " Portal. Immediately, I uploaded my ** data AGAIN, in the fashion requested ( see supporting doc ). I called to follow up AGAIN on XX/XX/XXXX, only to be told Coinbase 'backoffice ' has to check the ** data I submitted and customer support said 'they are not able to escalate anything ' - basically, I am locked out of my money,, and they are providing NO solution to this problem. As far as I am concerned, this is approaching financial crime-status.I can not believe how this company operates. They are operating in an illegal fashion, providing zero solutions and locking me out of my financial belongings. Please assist asap. This is outrageous and unacceptable. I have also filed a FORMAL COMPLAINT with Coinbase, which is Case # XXXX. Today is XX/XX/XXXX and nothing has changed. I
Company Response:
State: GA
Zip: 30327
Submitted Via: Web
Date Sent: 2022-08-21
Company Response to Consumer: Closed with monetary relief
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2022-08-19
Issue: Fraud or scam
Subissue:
Consumer Complaint: XXXX XXXX XXXX The Consumer Financial Protection Bureau ( CFPB ) 1700 G Street NW., Washington , DC 20552 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 organisation 's service, seeking a formal, impartial investigation to amicably settle my dispute ( Ref : XXXX ) 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 recognise 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 : About XX/XX/XXXX, I fell victim to two multi-layered scam operations run by Hackers which involved me making deposits for a total amount of XXXX USD from my Coinbase account to fraudulent investment firm ( XXXX ). 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 ( XXXX ) in question despite being aware of the nature of the transaction ( XXXX ) 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 banker. In this case, this means that the payment service provider should not turn a blind 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 : On XX/XX/XXXX, Coinbase wrote in a letter Unfortunately, due to the technical nature of most digital currency networks, we are unable to cancel these payments and we are unable to mediate in any way in this matter. Digital currency transactions can not be reversed or canceled on the blockchain, it is important to be careful and make sure you trust everyone you send digital currency to and allow access to your computer. Coinbase also has no knowledge of the ownership of external cryptocurrency addresses, and since this is an external process, Coinbase can not reverse, cancel, transfer, or refund these funds on your behalf. 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. XXXX a view according to which the XXXX 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 blind and blank fashion, but rather to strike a balance between executing those transactions and capitalising 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, 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 : XXXX ) 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 ; XXXX 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 empathising 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 organisation 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.
Company Response:
State: TN
Zip: 38111
Submitted Via: Web
Date Sent: 2022-08-19
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2022-08-18
Issue: Fraud or scam
Subissue:
Consumer Complaint: So I get an email from Coinbase tell me someone is trying to access my account from XXXX Texas different IP address please let us know if this is you I said no its not then they send an email to verify my ID so I did XXXXXXXX XXXX on the XXXX XX/XX/2022 while I was trading on my account at XXXX my tokens were starting to sell and purchase bitcoin I froze the account And I contacted coinbass and contacted Coinbase we went back-and-forth through emails and showed him how everything I got was from coinbase.com the lady said that they would get back to me as a try to solve this problem they never did so I got in contact with them all I hear sorry that this is happening I showed them proof that there was no third-party involved it was all through coinbase.com Three days later they completely shut my account down when I go to login now it says account do not exist at the time my account was worth {$68000.00}. 3 months ago the same account was {$680000.00} The market took Hit and I understand that Thats a coinbass To rob me out of my own account and pretend they dont know what theyre doing and whats going on I need my account back and my tokens so I can take them off this website and go somewhere thats secured since Coinbase is robbing their own Customers please advise
Company Response:
State: OH
Zip: 44130
Submitted Via: Web
Date Sent: 2022-09-07
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A