Coinbase Experiences Increased Account Restrictions Amid User Complaints
Coinbase faces criticism over account restrictions, with users reporting accounts frozen for months or years. Complaints emerged on X, challenging Coinbase’s claim that a "minor increase" in restricted accounts was due to inactivity and FUD (fear, uncertainty, and doubt).
On December 9, Coinbase Support acknowledged a significant rise in platform activity post-election, noting a 2-3x increase in fraud attempts. This surge triggered automated fraud-prevention measures, leading to higher account restrictions and longer customer support response times. Coinbase stated it is working to resolve these issues but has received strong user backlash.
Users expressed frustrations online, accusing Coinbase of misleading the public. Reports indicate prolonged freezes on trading and withdrawals, with some accounts undergoing extended manual reviews or flagged for VPN usage. One user reported their account was locked for using a VPN, while others claimed minimal support from Coinbase despite multiple inquiries.
Prominent crypto figures criticized the exchange. Investor Glauber Contessoto remarked, “Coinbase needs a 24/7 customer service line where users can speak to a real person.” Many similar comments highlighted widespread dissatisfaction with Coinbase's customer support.
Coinbase encountered additional challenges this year, including a phishing attack resulting in a $6.5 million loss, with funds laundered through TON-linked wallets. The company also exited the Turkish market due to regulatory difficulties, reflecting broader challenges in global compliance for crypto exchanges.
Despite these setbacks, Coinbase achieved financial success in 2024, with increased crypto trading activity and favorable US regulatory developments contributing to a 97% year-to-date stock gain. Its layer-2 network, Base, surpassed six million daily transactions in Q3, ranking as the fifth-largest blockchain by total value locked (TVL).
While Coinbase's financial performance remains strong, the backlash regarding account restrictions underscores the need for enhanced customer service and communication. The company faces increasing pressure to address these concerns as its user base expands.