Date Received: 2022-03-20
Issue: Money was not available when promised
Subissue:
Consumer Complaint: On XX/XX/2022 my coinbase account was restricted with no notice to me. No reason was given. I immediately opened a case but received no response as of today, XXXX XXXX, 2022. I filed multiple complaints directly to coinbase and called them many times but they refused to tell me what to do or give me back my money. I have around $ XXXX in the account that I am unable to withdraw. I submitted withdraw requests but coinbase cancelled them. I am unable to sell the crypto in my account or withdraw it.
Company Response:
State: PR
Zip: 009XX
Submitted Via: Web
Date Sent: 2022-04-06
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2022-03-18
Issue: Fraud or scam
Subissue:
Consumer Complaint: 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 recognize that I am the victim of an investment scam. My complaint to the XXXX 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 XXXX as well as their own internal policy and procedures sold to their clients. General Obligation : Commencing on or around XX/XX/XXXX, I fell victim to two multi-layered scam operations run by XXXX DBA XXXX which involved me making deposits for a total amount of XXXX USD from my Coinbase account to these fraudulent investment companies. 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 transactions in question despite being aware of the nature of the transactions 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 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 By their very nature, all cryptocurrency transactions that are completed on the blockchain are irreversible. Similarly, because of the nature of blockchain transactions, Coinbase can not verify who owns blockchain addresses and, in the terms of sends, there is no way for Coinbase to cancel, reverse, or recover the cryptocurrency sent. We have reviewed your Coinbase account records, and checked the circumstances surrounding your sends. You properly accessed your account, verified your authorisation by correctly submitting the required two factor identification code, entered the recipients blockchain address, and completed the send. Coinbase accurately processed sends in accordance with your instructions. Coinbase has no relationship with the third-party whom you state owns the blockchain address to which your USDC and ETH were sent when you authorised your sends. If you have a dispute with a third-party you should resolve the dispute directly with that third party. 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 blind 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. Taking into consideration that vast experience of Coinbase, their knowledge of applicable regulations and good industry practices in the XXXX, I am quoting herein the British Standards Institutions code of practice ( BSI : PAS 2017 17271 ) as I believe Coinbase should be completely cognizant with its principles. The Code gives 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. It establishes that, as a general principle, the organisation should deliver a service that : 3.1 ( b ) 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 states that 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. In regards to the detection of fraud and financial abuse, Code 5.3.1. states that organisations 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, ( the application examples are in bold ) : multiple chequebooks ; sudden increased spending ; transfers to other accounts ; multiple password attempts ; logins from new devices, multiple geographical locations ; sudden changes to the operation of the account ; a withdrawal or payment for a large amount ; a payment or series of payments to a new payee ; financial activity that matches a known method of fraud or financial abuse The Code at 5.4.2. sets out that organisations should have a process in place to ensure that staff members 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.
Company Response:
State: NJ
Zip: 08109
Submitted Via: Web
Date Sent: 2022-03-18
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2022-03-17
Issue: Unauthorized transactions or other transaction problem
Subissue:
Consumer Complaint: I have a cryptocurrency investment account opened through Coinbase that had been perfectly fine for a long time. My balance in the account was around {$6000.00} when I was informed on XX/XX/XXXX at XXXX XXXX that my account had been compromised and there was a password change as well as initiation to withdraw my funds. I immediately called Coinbase and locked my account, ensuring that my money was frozen and none of the transactions were to go through. I was ensured my money was safe and all I would have to do is recover my account through my email. However, I stopped receiving emails from Coinbase through this email since my account had been compromised. After weeks of attempting to recover my account, I had created a new account for Coinbase to safely transfer my funds over. However, after the funds were transferred I found out there was only about {$100.00} in my new account. I had lost the rest of the funds after I was told they were frozen and safe. Even though I had immediately called to freeze my funds and cancel all unauthorized transactions and was assured they were cancelled, they still went through. Not only had the company lied to me, but they also lied to my financial advisor at my local bank.
Company Response:
State: NJ
Zip: 087XX
Submitted Via: Web
Date Sent: 2022-03-17
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2022-03-15
Issue: Other transaction problem
Subissue:
Consumer Complaint: On XX/XX/XXXX, I sent a Litecoin ( XXXX ) transaction to a Bitcoin ( XXXX ) wallet. I was misinformed by the Coinbase pro system which stated at the time I was making the transaction that the wallet I was sending it to was a good XXXX wallet but it was not. Many websites such as Coinbase have this wallet detection option which I used because it will tell the user if the wallet belongs to a different coin network, so as to prevent money transfer issues. However, the Coinbase system failed and it incorrectly advised me that the wallet I was sending to was correct, when in fact it was not. I did not discover it was sent to a different network until after I submitted my transaction and it showed it was now pending. The transaction I submitted amounted to roughly {$1600.00} worth of digital currency which is no small amount to lose, so I immediately called the Coinbase customer service line to cancel the transaction as only they could cancel a pending transaction at that time. The agent I spoke with seemed oblivious at handling his job as it took him an extensive amount of time ; almost thirty minutes to simply pull up my transaction although I gave him more than enough pertinent information to locate it. Unfortunately, due to the agent 's delay in locating my transaction, my transaction went from pending to now completed on their system while I was waiting on him. This was very upsetting when I saw that happen because I stressed the urgency to the agent of canceling my transaction before it completed and had he not taken so long to simply access my account he could have canceled it. After I saw it was completed on my end, the agent then finally came back on the line after having me wait for so long just to inform me my transaction was completed so he could not cancel it. Fortunately, he said there was something that he could do which was that he would put in a request for someone on the Coinbase pro team to contact me to get this resolved. I waited weeks for a response of some sort but I got nothing, so I knew that agent I originally spoke to did nothing. So, I called again and the new representative I spoke to mentioned to me that the original representative not only left no notes about my issue but also never submitted a request to the pro team. I was very livid at this point but this new agent assured me that they would put the request in for me and that someone would contact me and that I would also get an email of the open request they submitted. They contacted me via email like they stated they would do, advising me that a case was open but no one ever actually worked on my request nor did they contact me again. After waiting for a while yet again I contacted Coinbase the first part of XXXX this year XXXX, where I complained letting them know that I wanted to open a complaint ( they sent me the email in the attachment on XX/XX/XXXX ) in which I responded saying I am making an official complaint. They then emailed me the next day on XX/XX/XXXX saying they are following up on if I am satisfied with my resolution when there was never anything done to address my issue, so I informed them that my issue was never resolved and to please escalate again. I never heard back from coinbase after I responded to their last email. I then called again on XX/XX/XXXX and this representative assured me that they would escalate to the Coinbase pro team. However, I explained to the representative the terrible service I have had so far and that I did not trust them or the coinbase pro team in any capacity to email me or handle this and that instead I wanted him to email his XXXX or XXXX internally to either call or email me directly but the representative refused. I clarified that I am not asking for their XXXX 's information but for them to contact their XXXX on my behalf like most companies would do if there is a prolonged issue and regular support has failed at their job. The agent kept refusing to contact their XXXX so I told him that I already made an official complaint so he could understand where I stood but he kept refusing to escalate my request to management. After the agent continued to refuse my request he went back to what he said at the beginning of the call which was I would get an email from the Coinbase pro team in regards to this matter. Of course I never got an email ; I checked my regular inbox, spam and junk mailboxes daily to ensure I did not miss their email but it's now been over XXXX weeks since that last call and I still havent heard from anyone in Coinbase about a resolve for getting my money back. As of today, I still havent had anyone resolve or even attempt to look more into my issue and none of my calls were taken seriously because if they were I would have been contacted. I have been a long time customer of coinbase and I have referred many people to sign up with them and they are treating me with no respect and have given me the worst customer service I have ever had even after making an official complaint to them. Coinbase is a XXXX dollar company that is publicly traded on the stock market and they can't handle basic customer service which is very disappointing. I hope to get my issue resolved with them and I am hoping with this CFPB complaint I will be taken seriously for once.
Company Response:
State: AZ
Zip: 85032
Submitted Via: Web
Date Sent: 2022-03-15
Company Response to Consumer: Closed with monetary relief
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2022-03-15
Issue: Wrong amount charged or received
Subissue:
Consumer Complaint: I have two issues with coinbase repayment system. My first issue happened XX/XX/XXXX, my bank card had been hacked so one of my payments reversed on coinbase for XXXX. I made a repayment using my crypto wallet XX/XX/XXXX in full. On feburary 1st coinbase charged me of what i already paid back. I have not recieved a refund since then. My bank account got hacked for a 2nd time feburary 17th causing {XXXX} to be reversed from my bank account on feburary 23rd. Ever since then ive been trying to repay them back but i keep getting error messages & my account has been locked for trading since. I have the funds in my wallet & bank account but nothing works. Ive called support every day but nobody seems to know how to help me out. Im affraid if i don't speak up i will lose all my money invested.
Company Response:
State: TX
Zip: 78216
Submitted Via: Web
Date Sent: 2022-03-15
Company Response to Consumer: Closed with monetary relief
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2022-03-15
Issue: Confusing or missing disclosures
Subissue:
Consumer Complaint: Coinbase XXXX allowed me to deposit into my account with them the virtual currency USDT. When I went to find the deposit in my account there is no USDT. Though XXXX I discovered NY residents are not allowed to use nor hold USDT. So although they allowed me to transfer to their platform they are not providing me with access to the funds. They're just keeping the funds with no recourse on my end.
Company Response:
State: NY
Zip: 11211
Submitted Via: Web
Date Sent: 2022-03-15
Company Response to Consumer: Closed with monetary relief
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2022-03-15
Issue: Other transaction problem
Subissue:
Consumer Complaint: I sent money to Coinbase & then transfer it to deluxe mining. Coinbase should have known that they were a fraud company site. I just want my money back. Do not use XXXX. A fraud company! I used Coinbase and XXXX with them.
Company Response:
State: SC
Zip: 298XX
Submitted Via: Web
Date Sent: 2022-03-15
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2022-03-15
Issue: Managing, opening, or closing your mobile wallet account
Subissue:
Consumer Complaint: For the past few years I have been using the Coinbase app on my phone with no problem, never having to log in or out to access my account. On XX/XX/XXXX, I had been logged out of my account ( not of my own doing ) and didn't remember my password to log back in. I attempted to change the password and received a notification that I was unable to access the account and to contact customer service. I called and emailed customer service that same day, assuming the resolution would be quick and simple. I received an email response from Coinbase on XX/XX/XXXX saying that there was an issue with the listed name matching the driver 's license provided. I responded same day that my middle name was just missing from the Coinbase account ( just listing my first and last names ) and at their request, provided a copy of my driver 's license. They said they received it and were " working hard to quickly address this issue, and we'll reach back out as soon as we have an update ''. The also said that if there were any additional questions to " feel free to reply back to this email '', On XX/XX/XXXX, they asked an additional 11 questions, all unrelated to my name. They were mostly questioning if there had been any unauthorized activity and when my last activities and logins were. I answered the questions the same day. There were no unauthorized activities to my knowledge. But they were not allowing me to even log in to my account, so there was no way for me to verify what the most recent activities were and if they were authorized. Since I had not received any emails of activity that were not initiated by me, I assume there was no outside activity. Although it was annoying to be locked out of my account for apparently no reason for a few days, there were no real problems to my knowledge up to this point. It seemed that Coinbase was replying in a timely manner. But this is when the problems with Coinbase started. On XX/XX/XXXX, I wrote asking for a status update, concerned about the market volatility and not being able to access my account for the past 4 days. I asked when I could expect a resolution and if there was anything additional I could do to help. I received no response. By XX/XX/XXXX, I had still had no response and asked again for an update. I asked why there was no response to my last email and expressed concern that no one had been able to explain what happened and why I still had no access to my account. I received no response. On XX/XX/XXXX I had still had no response and again asked for acknowledgement of receipt of the email and what to expect going forward. I received no response. On XX/XX/XXXX I called customer service for a status and to talk to someone who had more information about why I still had no access to my account. The person I spoke to said she had no access to my account and was just a middle man. But she said she would " escalate '' my issue. I did not receive a response from Coinbase. On XX/XX/XXXX there was still no response so I sent yet another email asking for a response and resolution. I had also noticed many similar complaints on XXXX and included a screenshot of one of those. It seemed that I was not the only one having an issue with Coinbase. Today ( XX/XX/XXXX ) I filed a complaint on Coinbase and called customer service again. Again they said they would escalate my claim. I finally received an email response, but it did nothing to resolve or address my claim. It just said that they received my inquiries and that they appreciate my patience and understanding. I also received an automated email that they had received my customer complaint. It has now been 25 days that I have not had access to my account. Coinbase has not explained why I have no access. With the exception of an automated complaint response and generic email today, Coinbase has not replied to any of my repeated inquiries as to why my account is still inaccessible during a volatile market in which I have lost an important amount of money due to lack of access of my account. It seems suspect that all of this has happened as the market has become increasingly volatile and it is an important time to have access to your Coinbase funds. Their website stated to give any issue UP TO 10 business days, which we are well beyond now.
Company Response:
State: OR
Zip: 974XX
Submitted Via: Web
Date Sent: 2022-03-15
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2022-03-11
Issue: Fraud or scam
Subissue:
Consumer Complaint: XX/XX/XXXX at XXXX am I had regular day to get ready for work. When I wake up I see my phone to check the weather but that day it was very shocking I saw a message telling me my Coinbase account has been breached. After that I tried to login Coinbase I couldnt login then I tried to change password I couldnt. Then I saw almost 200 emails which is telling me I transferred this amount of Bitcoins at this wallet address like this Congratulations! You have successfully sent XXXX XXXX to XXXX. You can view transaction details in your Coinbase XXXX account. To facilitate this transaction, you paid XXXX XXXX in network fees. After that I find out my XXXX phone is out of service. So I had to change my sim call XXXX and they help me to restore my line. I complained to my local police and they give me a case number then I also reported to the fbi. Now I have headache mourn for my money my wife is crying day and night. Our hardworking money go all on a second. Now Coinbase they cant help me to restore my Coinbase account I called them 10/15 times. They just send me an its my responsibility to protect my password. But police want to what IP address the guy login and all the transactions in my account but Coinbase cant help me.
Company Response:
State: PA
Zip: 194XX
Submitted Via: Web
Date Sent: 2022-03-29
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2022-03-13
Issue: Other transaction problem
Subissue:
Consumer Complaint: On XXXX XXXX2022 I made several large deposits to Coinbase from a personal account of mine. I had XXXX as CASH assets in my account. I purchased crypto currency, a few days later Coinbase took my assets. I want my initial investment returned, or up to the amount they are FDIC insured for.
Company Response:
State: CA
Zip: 94954
Submitted Via: Web
Date Sent: 2022-03-13
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A