Consumer complaint received 2021-04-30
Company: Coinbase, Inc.
State: CA
Product: Money transfer, virtual currency, or money service
Sub-product: Virtual currency
Issue: Fraud or scam

Complaint:
RE : Coinbase XXXX XXXX # XXXX, # XXXX et al To whom it may concern. 

I was the victim of a sophisticated scam/hack of my Coinbase account that occurred at approximately XXXX XXXX XXXX XXXX on XX/XX/2021. 

At stated time, I received a phone call from a person XXXX XXXX XXXX claiming to be a representative of Coinbase, and from a phone number matching that of the Coinbase phone number listed, XXXX. XXXX There are phone records to support this. ) This incoming call occurred simultaneous to my receipt of a text from Coinbase stating that the Password had been changed on my Coinbase account. When I subsequently attempted to login to my Coinbase account, it failed. During the ensuing minutes the representative was able to recite account details to me about my Coinbase account, including coin balances, recent transactions, etc., and he convinced me that time was of the essence in locking down my account. As such, two-factor authentication was requested and given to achieve that end. Upon hanging up, I was disturbed that I received another text notification from Coinbase stating that two-factor authentication had been changed. At that time and within 8-minutes of hanging up, I locked down my account through the normal process of calling in on from the listed phone number on my account and proceeding with the steps to lock it down. This was done twice, which is why there are two case numbers assigned to my account and this matter. Emails were received from Coinbase on XX/XX/2021 at XXXX and XXXX confirming the lockdown of my Coinbase account as well. 

I proceeded to follow steps provided by Coinbase in subsequent emails to reset my password and received text notice that I was successful at XXXX XXXX on XX/XX/2021 through the same text stream as before, as well as email. I also followed steps to re-verify my identy, but could not complete the upload. Subsequent email received at XXXX on XX/XX/2021 stated It looks like your ID uploads were successful and have already been submitted for review.. However, the ID uploads that I ever completed were nearly 4-years ago, when I initially opened my account. XXXX This concerned me that the hacker may trying to supplant my original documents with fake documents. ) The following day, XX/XX/2021, I woke up to an email notice from my Coinbase account associated bank that a transfer had been initiated by Coinbase for {$15000.00}. I informed my bank that this was part of an illegal transfer initiated during a hack of my Coinbase account, and successfully stopped the transfer from completing. All transactions with Coinbase were also blocked until further notice as an additional safety measure. 

Multiple emails were sent and received during the following days between XXXX support and me, although most if not all emails from Coinbase support seemed to be canned responses. On XX/XX/2021 one such email was related to the illegal transfer of funds from my bank initiated by the hacker during the scam/hack of my account. That email stated that your recent transfer failed and went on to say I had a number of days to fund the transfer or they would recover the funds from my account assets. 

As such, a formal complaint was filed with Coinbase ( complaint # XXXX XXXX on XX/XX/2021, against Coinbase Support, for lack of any reasonable update or resolution on the matter ( including regaining access to my account ), and to attempt to stop a recovery of funds from my locked account. 

Despite additional emails from me to Coinbase Support regarding the matter, and specifically regarding the illegal transfer, I received an Automatic recovery notice, on XX/XX/2021, which went on to state that an automatic recovery would begin on XX/XX/2021 if payment was not received. As a matter of fact, an email from Coinbase Funds recovery complete was received on XX/XX/2021, and it did in deed confirm that funds were successfully collected from the my Coinbase account in the amount of {$15000.00}. An account which was locked down due to a breach as of XXXX XXXX. 

Further, as of the date of this complaint, I have still not been given access to my Coinbase account, and despite repeated requests, I have not received any updates from support as to the status of my account, which assets were sold from to recover funds, what the balances are on my remaining assets in my account, etc. I did get a response from the complaint officer stating that nothing could be done until support resolves the case. However, the complaint was about the recovery of funds before resolution, and also the amount of time support is taking to provide any details with substance regarding the status of my account, and their inability to restore access in an acceptable amount of time. 

A second formal complaint ( Complaint # XXXX ) was also filed on XXXX XXXX  2021 specifically to address the sale of assets from my account during an unresolved case involving the attempted illegal transfer of funds from my bank, and the recovery of same from my account. 

As such, I am filing this formal complaint for the sake of regaining access to my Coinbase account, and for absolute transparency and timeline on the sale of his assets, remaining asset balance et al. 

I fully understand that Coinbase fine print is not responsible for loss of assets due to breach of individual accounts. But their lack of communication as to the status of my account, allowing access to my account, and an accounting of the recovery of funds from my locked account, is unacceptable. 

I can supply phone records, emails, texts, etc., as needed to support what I have written in this complaint. Coin balances as of said date can also be provided, and they amounted to approximately {$130000.00} as of XX/XX/2021. Coins included : XXXX, XXXX, XXXX XXXX XXXX ), XXXX XXXX Amounts of each can be provided if required. 

Sincerely,

Company response to consumer: Closed with explanation