Consumer complaint received 2021-12-03
Company: Coinbase, Inc.
State: TX
Product: Money transfer, virtual currency, or money service
Sub-product: Virtual currency
Issue: Other transaction problem

Complaint:
Dear Coinbase, I've been your loyal and happy customer of your trading platform since the beginning, and I fully trust in this brand. 
Unfortunately, two weeks ago, a girl from XXXX sent me XXXX messages about cryptocurrencies. In the same week we were having XXXX calls about a very attractive investment she was part of, a XXXX mining pool that rewards according to the balance in your wallet. I did a lot of research about it, and was extremely suspicious that it was more likely a scam, it was just too good to be true. She insisted, then she pitch Coinbase Wallet : No hacker in the world could every break into that wallet, only you can move funds from in and out of it. I went to my Coinbase exchange account and was trying to figure out how i could use my wallet for that purpose. The she sent me print screen of her phone showing an app icon, I was supposed to go to the XXXX app store, and have it downloaded into my XXXX XXXX. I was surprised at first because I have never heard of this Coinbase Wallet before, as an app disconnected from my Coinbase accounts. I thought it was fake, but after doing some research I found that this was legit, a real Coinbase product and the most secure in the market, with its unique user-centric approach. I learned that no one could do anything in it but me, so I felt comfortable on moving forward. I downloaded the app, created a wallet and have my security phrase written down on a piece of paper and put it my safe. I can assure no one has ever seen that but me. With the account ready, I started to add funds, in XXXX. From a XXXX, I went to XXXX XXXX, then XXXX XXXX XXXX. The balance was there, and I was seeing my rewards being added up. I was able to claim the rewards and exchange to XXXX. I was constantly searching for scam stories, and found many cases, but no one referring the Coinbase Wallet. I was nervous, and very suspicious, so I've decided to withdraw all my funds from there. I moved all my XXXX to my Coinbase Pro account. Days passed and I spent lot of time questioning myself for leaving this opportunity, the gains were excellent, it was basically 1 % back to me everyday, in XXXX. The girl from XXXX continue to insist I should never lose this opp. She shared print screens of her phone with a XXXX in her Coinbase XXXX. I then made the terrible mistake to go back there, depositing $ XXXX, and the rewards were coming ; I was very excited for that, thinking, Oh my gosh I will be making XXXX XXXX dollars per day, every day. I was constantly checking the status of my Coinbase Wallet, it was all good, until a button pops up within the app interface, asking me to add liquidity to the pool, the moment I click that button my balance disappeared from my wallet, and I panic. I chatted with their tech support agent within the app, fully believing that this was a Coinbase support agent. was able to calm me down. and also told me that this was a standard $ XXXX smart contract for the period of 30 days. I went to my Coinbase Pro account and transferred another $ XXXX, with a total loss was {$210000.00}. This happened last Saturday ( XX/XX/2021. The girl from XXXX suddenly disappeared, then I finally came to the conclusion that I was victim of a scam. I panic, and went to Coinbase support team, and after a few days of waiting for contact, they told me that there was nothing that could be done, due the nature of your product : user-centric, everything were done by me, or by anyone with the access to the security phrase. I know this is not right, my wallet has never been restored, the security phrase has never leave my safe, and my funds where stolen in full. I have never received an email saying that my wallet was restored, I have never receive an email informing an withdraw, I was never asked to authenticate with my authenticator app, in order to get the funds out. Whoever did that, know your product very well, and most likely know how to exploit a security flaw. I am a geek, and I know what I am talking about. I have already reported the case to the FBI, and now with though this complaint I have hopes that this will end up with a happy end to me, as a happy Coinbase customer.

Company response to consumer: Closed with explanation