Consumer complaint received 2021-10-20
Company: Coinbase, Inc.
Product: Money transfer, virtual currency, or money service
Sub-product: Virtual currency
Issue: Fraud or scam

Complaint:
Dear Madam / Sir, In XX/XX/2021 I deposited USD XXXX via credit card to the company XXXX ( Accessily Receipt ). Then a certain XXXX XXXX XXXX called me and told me he had already earned XXXX EUR in Bitcoins for me, but I had to deposit a minimum of XXXX EUR to get a refund of my money + profit, which I refused. He then insulted me and threatened me with the police and prison, etc. I did not react to this anymore and it was quiet until XXXX. Then in XXXX a XXXX XXXX XXXX from XXXX called me and told me I had XXXX EUR in my bitcoin account at Coinbase. I told him that I only wanted my XXXX USD back. He then said it would be easy to get all XXXX EUR though, I just needed to deposit XXXX EUR because XXXX USD would be too small a capital investment for such a payout. I let myself be persuaded and deposited these XXXX EUR with his help, giving him access to my laptop with XXXX. XXXX XXXX was very friendly and guaranteed that I would receive XXXX EUR immediately. I never contacted XXXX myself until then and I had no contact with XXXX at all! 
After that I received the first e-mail from XXXX on XXXX, according to which I still had to deposit XXXX EUR, if not, it would be forwarded to the tax authorities and I would have to expect a penalty of XXXX EUR. That's when I got scared and deposited XXXX EUR with the help of XXXX XXXX ( using XXXX ). ( see e-mail among others ). When Coinbase then wanted another XXXX EUR for an insurance on XXXX, I could not pay it anymore. You can read for yourself in the e-mail correspondence below how it went on. Coinbase then also contacted me very often by phone to convince me to deposit the money. 
I then had my online banking blocked and went to the police to file a complaint. I never look backward except for learning, nor do I have a proclivity to blame others for my downfalls, however, I cant help but link this enormous loss with the trust I had instilled in XXXX, a regulated institution, XX/XX/2021 XXXX AM XXXX XXXX XXXX wrote : Dear Coin base Team, I decided to withdraw the full amount without insurance, because I do not have the requested funds for insurance. 
Please confirm by return that my funds are free for withdrawal. 

Kind regards, XXXX XXXX Am XXXX um XXXX schrieb XXXX XXXX XXXX XXXX : XXXX Dear XXXX XXXX, XXXX XXXX Thank you for your response. 
> > We understand and we apologize for this situation. However, as noted, this for your own safety and the safety of your funds. 
> > Unfortunately, that would not be possible. When the transactions are divided in several parts, the risk of them being stolen or followed are much higher. Therefore, we suggest that we make it XXXX whole transaction. 
XXXX XXXX Yours Faithfully, XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX XXXX, CA XXXX, United States XXXX XXXX Coinbase Support XXXX XXXX On XX/XX/2021 XXXX XXXX  XXXX XXXX XXXX wrote : XXXX XXXX XXXX Dear Coinbase Team, XXXX XXXX Thanks for your e-mail. I would like to secure my transaction, but I only have XXXX EUR left on my bank account to cover the insurance. What amount of my funds can I get back safely for this insurance of XXXX EUR? 
>> >> Please reply immediately. 
XXXX XXXX Kind regards, XXXX XXXX XXXX XXXX XXXX XXXX Am XXXX um XXXX schrieb XXXX XXXX XXXX XXXX : XXXX Hello XXXX XXXX, XXXX XXXX Thank you for being our client and for following our rules and regulations. As promised in our previous encounter, the sum has been released and is available for a withdrawal. They are stored under a secured wallet address with an encryption. You are free to withdraw your funds. 
>>> >>> Nevertheless, with the recent situation regarding the Bitcoin Scandal with hackers, Coinbase and XXXX have taken extra steps to secure your funds and to insure your transaction. Until the situation is settled with XXXX and XXXX, we require each and every single client to insure their Bitcoin transactions with Bitcoin Theft Insurance ( Please see the attached links for reference ). 
>>> >>> Bitcoin Theft Insurance : >>> https : //www.coincover.com/theft/bitcoin-insurance # : ~ : text=is % 20Theft % 20Cover % 3F- , % E2 % 80 % 8B, time % 20and % 20date % 20of % 20theft. 
XXXX XXXX XXXX Theft article : XXXX https : XXXX XXXX XXXX In your case, you are withdrawing XXXX EUR onto your personal bank account. In order for us to secure your transaction you will have to place XXXX EUR on your personal XXXX wallet. The sum will of course will be returned to you together with the XXXX EUR onto your bank account as soon as it arrives. 
>>> In case of XXXX theft by hackers, the full sum will be reimbursed onto your personal account. Plus, the insurance sum, that you have placed onto your personal Coinbase account. 
XXXX XXXX Mrs.XXXX, we would kindly ask you to take this matter seriously. This is for your own safety and the safety of your capital in your bank as well as in your Coinbase account. In case of theft during the transaction, hackers might be able to get direct access to your personal bank details as well. 
>>> >>> Yours Faithfully, >>> >>> >>> XXXX XXXX XXXX XXXX XXXX, >>> >>> XXXX XXXX, CA XXXX, United States >>> >>> Coinbase Support >>> >>> >>> >>>> On XX/XX/2021 XXXX AM XXXX XXXX XXXX wrote : >>>> >>>> >>>> Dear Coinbase, >>>> >>>> I have done what you asked for, I have registered the money. I will be waiting for maximum 2 hours for the money to be available for a withdrawal. 
>>>> >>>> Kind Regards, >>>> >>>> XXXX XXXXr >>>> >>>> Am XXXX um XXXX schrieb XXXX XXXX XXXX XXXX : >>>>> Dear XXXX, >>>>> >>>>> Coinbase is a company that follows rules and regulations. We respect our clients and we are thankful that you have chosen our platform. We assure you that once all the mentioned points have been met. Your withdrawals will be opened, and you will be able to withdraw your funds. 
>>>>> >>>>> >>>>> Yours Faithfully, >>>>> >>>>> >>>>> XXXX XXXX XXXX XXXX XXXX, >>>>> >>>>> XXXX XXXX, CA XXXX, United States >>>>> >>>>> Coinbase Support >>>>> >>>>> >>>>>> On XX/XX/2021 XXXX AM XXXX XXXX XXXX wrote : >>>>>> >>>>>> >>>>>> Dear XXXX Team XXXX >>>>>> >>>>>> This was a shock for me. I was not expecting this situation. However, I have done what you have asked me, and hopefully the money will arrive tomorrow. If the money is not released within 2 hours, I will take this case to court. This is my last attempt, I am not going to take any further steps. 
>>>>>> >>>>>> Thank you and Kind Regards, >>>>>> >>>>>> XXXX XXXX >>>>>> >>>>>> Am XXXX um XXXX schrieb XXXX XXXX XXXX XXXX : >>>>>>> >>>>>>> >>>>>>> >>>>>>> >>>>>>> Hello XXXX XXXX, >>>>>>> >>>>>>> This is Coinbase Support Team.

>>>>>>> >>>>>>> Thank you for using our services. 
>>>>>>> >>>>>>> Congratulations! you have successfully received XXXX XXXX ( XXXX EUR ) on your wallet. 
>>>>>>> >>>>>>> Withdrawal Status - Declined ( Account symbiosis not activated ).

>>>>>>> >>>>>>> We have noted, that you made an attempt to rally your personal Bank Account XXXX Bank XXXX ) with your Coinbase account. First attempt was successful, however, the sum received from the third party is larger than the amount that has been received from your bank. 
>>>>>>> >>>>>>> In order to avoid blocking your funds and your bank account while making a withdrawal, you have to place XXXX EUR on your Coinbase account for registration.Once the process will occur, the funds will be cleared out and we will release the transfer. 
>>>>>>> >>>>>>> Guideline for safe withdrawals : >>>>>>> >>>>>>> Fund your Coinbase wallet with of the amount you are withdrawing ( which is XXXX EUR ) >>>>>>> Within XXXX hours you will receive a greenlight from the XXXX Department. 
>>>>>>> When you have the confirmation from Financial Department you can instantly withdraw XXXX EUR + XXXX EUR back to your bank account. 
>>>>>>> >>>>>>> >>>>>>> If the above-mentioned points are not met, the funds under your name will be frozen. The information will be passed to the financial institutions and a fine of XXXX EUR will be placed under your name for undeclared money. 
>>>>>>> >>>>>>> If you need some assistance, do not hesitate to contact us on this email. 
>>>>>>> >>>>>>> Please reply us here with the confirmation that you made a deposit of certain amount which was asked in Document and it was transferred to your Coinbase account so we can send you the full amount to your attached bank account. 
>>>>>>> >>>>>>> ( We do not take any responsibilities for unauthorized transactions ) >>>>>>> >>>>>>> Yours Faithfully, >>>>>>> >>>>>>> >>>>>>> 5XXXX XXXX XXXX XXXX XXXX, >>>>>>> >>>>>>> XXXX XXXX, CA XXXX, United States >>>>>>> >>>>>>> Coinbase Support >>>>>>> >>>>>>> >>>>>> >>>>> >>>>> Yours Faithfully, >>>>> >>>>> >>>>> XXXX XXXX XXXX XXXX XXXX, >>>>> >>>>> XXXX XXXX, CA XXXX, United States >>>>> >>>>> Coinbase Support >>>>> >>>> >>> >>> Yours Faithfully, >>> >>> >>> XXXX XXXX XXXX XXXX XXXX, >>> >>> XXXX XXXX, CA XXXX, United States >>> >>> Coinbase Support >>> >> > > Yours Faithfully, > > > XXXX XXXX XXXX XXXX XXXX, > > XXXX XXXX, CA XXXX, United States > > Coinbase Support >

Company response to consumer: Closed with explanation