Consumer complaint received 2023-01-29
Company: Coinbase, Inc.
State: CA
Product: Money transfer, virtual currency, or money service
Sub-product: Virtual currency
Issue: Other transaction problem

Complaint:
Hello my name is XXXX XXXX. I have been a long time user for Coinbase. I have recently been depositing XXXX  then converting into XXXX and then sending that money to my external wallet account with " XXXX XXXX  '' which is another broker. These transactions were sent through the XXXX network which I had no problem, successfully doing it three times and on the fourth time later within the month Coinbase stopped my transaction from completing and restricted my account. This was because they think it puts me or my account in risk of scam for " security reasons '' which it is not, I am simply transferring money to my other brokerage account with XXXX XXXX and have been doing so perfectly fine for the last 3 transactions successfully. My complaint is to stop the restriction on my account because the transfer is safe. There are several others that I know who have gone through the same issue and needs to stop the account restriction. ( 3 ) Successful transactions to XXXX XXXX were on : XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX 

Coinbase sent me the following in which I do not agree because it is a safe verified transfer to my account to XXXX XXXX. = " According to our records, the blockchain address you attempted to send to XXXX is one that Coinbase can not facilitate transactions to for security reasons. 

Coinbase has disabled your ability to send crypto from Coinbase. This feature will not be re-enabled until XXXX at the earliest. Due to the current restrictions on your account, if you would like to send this crypto from Coinbase, you must first convert the crypto to cash funds and then cash out those funds to your verified bank account. 

For your security, your account is not currently eligible to create a purchase order. As such, your account is not currently eligible to link/restore a payment method. We've already escalated your case to a team who will be completing a review of your purchasing eligibility shortly. Please note, this will not affect your ability to sell and cash out to your bank. 

You will receive a notification email if we're able to restore your purchasing ability. While these reviews are typically completed within 4-5 business days, it can sometimes take longer. For security reasons, Coinbase can not guarantee eligibility for every account.

To ensure that you avoid any potential future cryptocurrency scams, please read this article in our Help Center XXXX XXXX XXXX XXXX XXXX '' I please ask Coinbase to stop my restriction on my account as soon as possible and let me continue to conduct my business with my money. The transfers are sent to my own verified account on XXXX XXXX. It is safe and verified successful for the past 3 transactions. It is a huge burden to me because of the long wait time and not guaranteed as stated by Coinbase 's response to my restriction at earliest until XX/XX/XXXX. It is very important to conduct these transfers ( XXXX ) as soon as possible due to it being crucial to my business. Please help, thank you.

Company response to consumer: Closed with explanation