Consumer complaint received 2021-05-19
Company: Coinbase, Inc.
State: FL
Product: Money transfer, virtual currency, or money service
Sub-product: Virtual currency
Issue: Money was not available when promised

Complaint:
XXXX # XXXX XX/XX/XXXX - between XXXX a series of unauthorized withdrawals were made from my Coinbase Pro account. The transactions were labeled withdrawal with no additional information. These transactions were executed in rapid succession, and in nearly equal amounts for a total withdrawal amount of {$30.00}, XXXX leaving a remaining {$21000.00} in the account. I did not initiate any of these transactions. 

I noticed this activity at XXXX the same night and immediately contacted Coinbase thinking there had been some kind of hack on my account. I Contacted them at support@coinbase.com, their online complaint form and their ( unattended ) customer support line asking for an investigation and immediate security hold to be placed on my account. 

As I was changing all of my computer passwords that same night and implementing other security measures I logged into my regular Coinbase account, which is an unused account and separate from Coinbase Pro, and saw the missing assets had been transferred into this account through these unauthorized transfers. The assets were no longer missing, but again, I did not make these transfers. This appears not to have been an account hack, but some kind of internal system error. 

At this time I transferred my holdings back from the Coinbase Account into my Coinbase Pro account and sent a follow up email to Coinbase to let them know the status that my holdings had been found. 

On XX/XX/XXXX XXXX Coinbase Support sent an email recommending security procedures and to reply back once I followed the security procedures in order to have access restored. 

On XX/XX/21 at XXXX I sent a response to the Coinbase Customer Support email letting them know this activity didnt seem to be a hack attack, but some kind of internal glitch or error, that I had completed the security procedures and requested to restore access. 

I have since sent several more emails requesting my access to be restored and most recently an email requesting the assets in my account and several emails demanding my assets to be released from the platform and back into my custody and control so I can transfer them off this platform. A few computer generated form responses were sent back stating that I would hear from someone within 5 days. I did not hear from anyone within this specified time. 

At this time, XX/XX/XXXX, 8 days have passed since the incident with no indication from Coinbase if or when my account access will be restored. 

At the time of my account freeze there were outstanding orders in process that I now have had no control over. I have not been able to modify any positions or holdings in response to volatile market conditions. The value of my account has been harmed by this extended freeze. 

These timeframes to respond is grossly unacceptable. There is no legal basis to withhold access to my assets. These markets are wildly unstable and I need to be able to remove my assets from their platform or change my holdings based on the market conditions. A XXXX based publicly traded company should not be permitted to conduct business this way. Coinbase should be responsible for any losses in value from the time I requested access to my account. 

The link below describes the Coinbase policy on freezing accounts and their internal standard to freeze an account. My situation does not rise to their own internal standard for a complete lock out. They also refer to this as rare, but when I look online I see countless other people complaining of similar lock outs. This is beyond outrageous. 

I am being harmed by this extended account freeze and complete lack of communication. 

https : //help.coinbase.com/en/coinbase/other-topics/other/does-coinbase-freeze-accounts I have screenshots of my account before the transfer, showing the transfers and after the transfer before my account was locked.

Company response to consumer: Closed with explanation