Consumer complaint received 2018-02-05
Company: Coinbase, Inc.
State: WI
Product: Money transfer, virtual currency, or money service
Sub-product: Virtual currency
Issue: Money was not available when promised

Complaint:
XX/XX/2018 This is written evidence of a felony theft of funds. 

The crime has been committed by Coinbase, located at XXXX XXXX XXXX # XXXX XXXX XXXX, CA XXXX. Coinbase is a financial institution dealing in the trading of US dollars and several crypto-currencies. 

Currently Coinbase is governed by and in violation of The Bank Secrecy Act by refusing to provide some records to their investors. 
The USA Patriot Act by refusing to identify or allow communication with a designated a compliance officer. 
Most states Money Transmission Laws and Corresponding Regulations. 

Coinbase recently encouraged me ( and all of their investors ) to move our finds from their Electronic Wallet to their Electronic Vault, claiming our funds will be more secure and better protected. When moving those funds to the Electronic Vault, they required a secondary email for future authorization to move funds back to our Electronic Wallet. And, when attempting to make such a transfer or withdrawal, they refuse to send an authorization to our secondary email address ( the same one as they initially required ) so that we are able to authorize any funds to be transferred or withdrawn from Electronic Vault.

To say it more clearly, imagine if your bank suggested you take your money out of your wallet and put in their vault. Then, told you, we cant let into the vault and we cant go in the vault for you. However maybe we can help you at some time in the future. Essentially, that is what is going on here. 

In short, they own and control our funds and have ( for 2 months ) replied to emails with a link to the Coinbase FAQs web-page, which does not address the issue. When calling in, they say ; we have lots of customers with service issues, well send your case to a specialist. However, the specialist will not be identified and any request to speak with a specialist, supervisor, company executive, or designated a compliance officer, is absolutely and firmly denied. 

This issue is effecting hundreds of people in the region, thousands in the state, and 10s of thousands nationwide. How much are we talking about? My investment alone was over {$170000.00} US dollars when I attempted withdrawel. As of today the investment is valued at {$97000.00}. 

It seems Coinbase is operating above the law and they are conspicuously unavailable to provide solutions. 

I would caution you to look back on the financial travesty of the XXXX XXXX situation to understand the devastating personal loss that could be caused if Coinbase continues to break the law and turn its back on its investors. 

This is not a case of bad customer service, or a glitch in the system, it is a case of stonewalling investors and blocking investors from their funds as long as the see fit or even worse permanently. 

I have stacks of emails and records of phone conversations, all claiming the same thing ; we have escalated your case and it should be resolved soon. ( 4 months from the day I was locked out and 1 month of daily communication - still no access to my finds. ) I am available to answer any of your questions via phone conference, or email in order to help expedite any assistance you can provide before the worst possible scenario happens even when it could have been avoided. 

I hope that you will take this matter seriously and I thank you in advance for your consideration.

Company response to consumer: Closed with explanation