Consumer complaint received 2019-05-08
Company: Coinbase, Inc.
State: WA
Product: Money transfer, virtual currency, or money service
Sub-product: Virtual currency
Issue: Fraud or scam

Complaint:
I set up an account with Coinbase out of XXXX XXXX, CA on XX/XX/XXXX. They required typical account opening information along with photo i.d . that I sent by using my phone to take a photo of the front and back. They also needed payment information for when I decided to do any transactions ( buying bitcoin or other such crypto currency ). I provided my banks routing number and account number. As of XX/XX/XXXX I received an email from Coinbase saying I was ready to buy. I was able to log in to the pc with my username and password. Please take note that I was never asked to submit a selfie when opening up my acount ... just the drivers license ( this is not a critical issue, but makes a point later ). I then began to make purchases of bitcoin on various days until I achieved how much I wanted. I then took a short break. While I was on vacation XX/XX/XXXX - XX/XX/XXXX I downloaded the Coinbase app on my XXXX phone. When I went to login it then asked me for an authenticator code. I did not have this on my phone set up so I just decided to do what I wanted from my pc when I got back. The next time I tried to log in and see my account was the morning of XX/XX/XXXX ( Tuesday ).  All of the sudden the website was now asking me for an authenticator code. I tried to set this up from my phone, but realized that coinbase did not provide me a key to open it. Ok I thought, they have a customer service number so I can have someone just verify who I am and get me back accessing my account. I called at XXXX in the morning ( pacific ) and held until I talked to someone. The rep tried to talk to me about the authenicator, but realized we would have to go a different route. He said after I login I must click below the box on " unable to submit a one time code ''. Then he said I must follow directions to reset my account. He then said it will go in for review and TAKE 48-72 HOURS to review. WOW! I am now locked away from my funds for 3 days minimum! Unable to sell if I need to? Never heard of such a thing. I asked to be escalated to a supervisor, was put on hold ... and then disconnected. I started looking up more about Coinbase and discovered many other instances of this. Decided the best thing to do was try and reset the account by going through the directions to reset my account ... ..even if it was 3 days, I need to do something. I logged back in and went through what the site asked for. I submitted a photo of my drivers license ( front and back ) and then it wanted a selfie from my webcam. After I submitted these it loaded and took some time, only to come back saying it failed validation because a photo was too big a file. It did not say which one. I could only assume the webcam one because I submitted the photos of my drivers license the same way setting up the account. I tried 2 more times to submit the photos while trying to shrink the file of my selfie. Each successive try failed for the same reason. I called the customer support again at XXXX ( pacific ) and spoke with a woman who said I should try using my phone with the XXXX browser. She talked me through the process. She said to use the camera on the phone from the site to take the photos. I tried holding up my drivers license in the photo box ( she said it will not use the rear camera ) and taking the photos of the license that way. I submitted and I was denied again! This time because the photo of my drivers license was not clear enough. I tried again 2 more times with her on the phone. Each time being denied for the same reason. She then said she will have to put me in contact with " direct support ''. She said that they will email me and have me send in the stuff direct. I questioned her on whether I would get a call from " direct support '' or I could call them. She said that they do not call direct for security reasons. That seems odd and terrible! I said ok, and waited for an email from this " direct support ''. I did not receive anything but an email telling me what to do to upload photos. Decided to try and resubmit the drivers license and selfie on the website. This time after taking them it denied me saying I tried too many attempts and could not again for 24 hours. WOW! I then decided to call back at XXXX XXXX  ( pacific ). I talked to a man who told me he did see that I was to be contacted by direct support. He said I should receive an email validating that. I said ok, but frustrated with all the run-around so far. I did get an email from coinbase saying that the support would email me and the reviews typically take from 4-5 business days, but sometimes longer ( I attached a screenshot of that email ). I decided there was nothing more I could do but research more on who could help me. This is where I found CFPB. Decided to sleep on it and take it up today ( XX/XX/XXXX ). Decided the first thing I would do is try again after the 24hours to resubmit the drivers license and selfie. This time I succeeded in getting the site to accept it. I now am waiting for the review and received an email saying it typically takes up to 72 hours ( 3 days ). 

Here are my concerns. They should addressed by coinbase : 1 ) Why was it so easy to set up my account without the selfie provided, but once coinbase received deposits from me and I got locked out, suddenly I have to go through many more challenging hoops.

2 ) It is unacceptable when a trading company such as coinbase has nothing better than a 3 day turnaround for clients who got locked out of their account. Ive worked for investment firms dealing with such matters, I have investments elsewhere, and NOWHERE is it like this. They always have someone available who can gain me access almost immediately. I am now waiting 3 days with money tied up in a speculative investment and if I get uneasy about owning I have nothing I can do. This is wrong! Also ... I still am not assured I will get my account verified. I will only get an answer in a minimum 3 days.

3 ) The tools to upload requested documents when someone gets locked out are awful. have directions on what the maximum file size can be. If someone is unsuccessful then there needs to be direct support who can call or be transferred to.

Company response to consumer: Closed with explanation