Product: Money transfer, virtual currency, or money service

Formal Complaint to the Consumer Financial Protection Bureau ( CFPB ) What happened? 

On XX/XX/XXXX, I encountered a significant issue with Coinbases platform that caused a substantial financial loss due to misleading platform design, improper handling of transactions, and poor customer support. The platform defaulted to using my linked bank account as the payment method without clear notification or confirmation, resulting in an unintended {$35000.00} transaction. 

Detailed Timeline : XX/XX/XXXX : I deposited {$2000.00} into my Coinbase account, purchased XXXX XXXX, and later converted XXXX USDC into XXXX XXXX. On the same day, I converted the remaining XXXX XXXX into XXXX XXXX. 

XX/XX/XXXX at XXXX XXXX  : I attempted to use my Coinbase balance of {$970.00} USD to purchase XXXX. Instead, the platform defaulted to my linked bank account without clear notice when it should have used the USD that I already have in my account, leading to a {$35000.00} transaction. This purchased XXXX XXXX for {$34000.00}, with a {$640.00} fee deducted. Companies like XXXX default to funds that are already in the XXXX account, and also will not let a XXXX XXXX  transaction go through as it knows beforehand approximately the amount of funds in my bank account. 

Realizing the error, I immediately contacted Coinbase support, literally within minutes. The representative assured me that when my bank rejected the withdrawal for insufficient funds, the transaction, including the {$640.00} fee which i specifically asked about, would reverse entirely. I have a recording of this call and can be submitted if given a way to do so. 

XX/XX/XXXX : My bank rejected the {$35000.00} withdrawal. Contrary to Coinbases assurances, XXXX XXXX  was confiscated from my account to cover price fluctuation losses. Additionally, Coinbase later applied an unexplained {$4300.00} charge to my account. 

It is important to note that when Coinbase executed the {$35000.00} transaction, XXXX was priced at {$2.00}. At the time my bank reversed the charge, XXXX  value dropped, which was cited as the reason for confiscating my funds. However, as of today, XXXX  price has increased significantly to {$3.00}, meaning Coinbase has not only avoided any loss but has likely profited substantially from this transaction. 

XX/XX/XXXX : I called Coinbase support again. This interaction was the worst interaction a customer service representative has ever given to me. The representative dismissed my concerns and refused to even understand what my complaint was even about, then multiple times refused to escalate the issue to a supervisor when i asked repeatedly, and abruptly hung up on me despite my polite requests. I never once raised my voice, cursed, or anything of the sort. I also have a recording of this call as evidence if needed and can be supplied if given a way to do so. 

XX/XX/XXXX : I decided to give Coinbase another chance even though the previous calls took literally HOURS to get through to the customer service representatives which is what made it the most frustrating. I contacted Coinbase via chat. After hours of back-and-forth, the supervisor I was transferred to also refused to investigate or acknowledge my complaint. The responses did not address any of my concerns that I told them about and was very dismissive. Then, without any notice whatsoever, I was transferred back to a lower-level representative, leaving the matter unresolved. This whole chat interaction was almost 4 hours long!!! All that time wasted. As you can imagine, I was beyond frustrated so I decided to see if filing a formal complaint with Coinbase would help the situation. 

XX/XX/XXXX : I submitted a lengthy and detailed formal complaint to Coinbase, outlining the timeline of events and the mishandling of my account. Despite the detail and evidence provided, Coinbase has not resolved my concerns or meaningfully engaged with my complaint. I have the exact complaint saved and can submit this as well. 

XX/XX/XXXX and XX/XX/XXXX : Coinbase sent generic email responses that failed to address any of my specific concerns. On XX/XX/XXXX, I responded, pointing out their failure to resolve the issue and demanding escalation to a supervisor. To date, my concerns remain unaddressed. Again, this is the most frustrating, infuriating experience I have ever had in dealing with a companies customer service. Just the shear arrogance and dissmissiveness and unwillingness to even try to understand my complaint and the hours upon hours of me trying to resolve this has led to me filing this complaint with CFPB. 

This mishandling has caused significant financial and emotional distress, including the loss of funds, wasted time, and undue frustration. 

Supporting Evidence I am prepared to provide the following evidence to substantiate my claims : Recordings of phone calls with Coinbase support representatives where incorrect assurances were made, and where refusal to understand my issue and refusal to transfer me to a supervisor were made. 

Screenshots of chat interactions with Coinbase support, highlighting their failure to address my concerns, failure of the supervisor to try to understand my issue, and transferring me abruptly back to a lower level employee without any notice was made. 

Transaction history from my Coinbase account showing the unintended {$35000.00} transaction, the confiscated XXXX, and the additional {$4300.00} charge. All other transactions also during the time frame leading up to and after. 

Copies of templated and irrelevant email responses from Coinbase support that failed to address my formal complaint. 

A copy of my formal complaint submitted to Coinbase on XX/XX/XXXX, which outlined the detailed timeline and issues with my account. 

A copy of my response email dated XX/XX/XXXX, explicitly highlighting Coinbases failure to address my concerns and demanding proper escalation in which they never responded back. 

Current pricing information for XXXX, showing its increase to {$3.00}, which demonstrates that Coinbase has likely profited from this situation despite claiming losses as justification for their actions.