Consumer complaint received 2020-08-11
Company: Coinbase, Inc.
State: GA
Product: Money transfer, virtual currency, or money service
Sub-product: Mobile or digital wallet
Issue: Unauthorized transactions or other transaction problem

Complaint:
I had a Coinbase account since XXXX. I purchased Bitcoin. I had a small balance in my account of approximately {$2000.00}. On XX/XX/XXXX, when Bitcoin was increasing in value I transferred {$4000.00}. from my XXXX XXXX  Account into Coinbase to purchase more Bitcoin.This transaction occurred in XXXX. I have all of the supporting documentation for this transaction. Towards the end on XXXX I tried logging into my account to check my balance and I could not get into my account. I was locked out. I called Coinbase and found out I had to email their support team. I became frustrated because I could not access my account and they were not helping me with their reply emails. Nothing was working and some emails Coinbase sent to me appeared to be generic emails. Coinbase then, after about 15 emails at this point, alerted me to the fact that I couldn't get into my account because a transaction from my XXXX account for {$5000.00}. was reversed. Thats when I really became alarmed because I did not make any transactions with my XXXX account and alerted them that I thought my account may have been compromised. I then got an email back with a link : https : //www.coinbase.comXXXX I was told that the resolution to my issue was to click the link and deposit {$5000.00}. into my account to gain access. 

This did not make sense. I felt fraud may have occurred on my account and I was told after 15 emails back and force to put more money into my account. Had I taken the recommendation of Coinbase I would have lost even more money because my account had been compromised. Coinbase would never take a call from me, even though on their website they do list a number for possible fraudulent activity. This is a deceitful way of doing business because they make it seem like if there is a fraud problem you can speak to someone. There is only a recording on that line. Therefore, rather than take their instructions to put more money into my account I closed my account because putting more money into my account in order for me to access my account made no sense -- especially if criminal activity had occurred. And further, Coinbase was telling me to do something that would expose me to more theft. This was their solution. That is negligent for a company to ignore my pleas for help with a possible compromised account and direct me to put myself in a position to loose more money. 

I later found that my account had been compromised and criminal activity had taken place. I was able to get the blockchain address where the money in my account had been transferred to. It was confirmed by the police report that I filled that the blockchain address where the money that was cleared out of my account was the address of over 2 Million dollars in stolen funds. 

It was not until XX/XX/XXXX, two months later, that I was able to find out what happened to my account. I have over 80 emails back and forth that I will send to you for documentation. I pleaded with Coinbase to call me and alerted them that criminal behavior was most likely taking place because I was frozen out of my account. When I finally got access to my account by having to set up a new account with a different email that I learned all of my money was moved out of my account in XXXX, and that was why I couldn't get access. 

Coinbase made a point to tell me they take no responsibility and security is up to me. I had security enabled on my account and they made no attempt to help me, and delayed me 2 months for finding out what occurred. And recommended a solution that would have resulted in even more money lost.

Company response to consumer: Closed with monetary relief