Consumer complaint received 2018-09-09
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:
On XX/XX/XXXX I used an Android App " Coinbase '' to purchase Bitcoin so I could make an online purchase from a Seller who only accepted Bitcoin as payment. I used my bank account for the {$400.00} fund transfer for the purchase of the Bitcoin. XX/XX/XXXX was a holiday and I understand that the funds would not clear until the next business day which was XX/XX/XXXX. The funds did clear my account on the XX/XX/XXXX yet when I checked my account on Coinbase they were showing a 30 day HOLD to allow the funds to clear my account and be credited to their account. This was the first time I had any experience with Bitcoin but I could not imagine any funds being held that long with the technology in processing fund transfers. When I made the transfer of funds on the Coinbase app there was no indication of any HOLD ; however, it was after the transfer was made that they notified you that there could be a hold up to 30 days. I noticed there was a phone number on their website ; however, it is for only questions that can be responded to with an automated response. You can also pose a question to them ( maximum of 100 characters ) but that as well will be responded to with an automated response. I was able to email them on XX/XX/XXXX expressing my frustration because of the HOLD on the funds. I received a response back that afternoon although it appeared to be an automated response as well based upon the email contained within my email to them. They indicated that the " normal '' hold time was anywhere from 2 to 5 days and depended upon whether the transfer was national or international. This company is based in XXXX XXXX and in reality their company bank account should have been credited on XX/XX/XXXX. I went to the XXXX XXXX app on my phone and checked the customer reviews on " Coinbase '' and noticed there was a long line of customer complaints regarding the same situation I was in and along with that a majority of them complained that there was no way to contact the company. I did some additional research on the internet and found an ENORMOUS amount of customer complaints, many were on XXXX, and all of them were stating problems of having funds held for weeks, months, and some stated they have yet to receive any of their funds back. Many stated they have already filed lawsuits against the company for such practice. At this point I pulled up my account on www.coinbase.com and noticed they were still showing receipt of the transfer on XX/XX/XXXX, still containing a 30 day HOLD. I sent another email to them on XX/XX/XXXX expressing my complete frustration and how in today 's technology any legitimate hold of funds could be issued for 30 days and expressed my desire for them to release the HOLD immediately and transfer the funds back to my bank account. I received a response back from them this time that they would review the HOLD time but could not promise anything would change ; however, I did check my Coinbase account and noticed they had changed the HOLD time now from 30 days to 8 days. That was on the XX/XX/XXXXand as of today, XX/XX/XXXX, I still have a HOLD time of 6 days showing. This is a company with a reported XXXX BILLION in revenue in XXXX and they are making hundreds of thousands of dollars, maybe even millions, and profiting from applying excessive HOLD times on their customer 's funds. I can not understand how this can legally continue. Something needs to be done, and based upon all the reviews of customer complaints I have read both on XXXX app and online regarding this company, that time is long overdue. When purchasing Bitcoin it is purchased and traded at current values just like stock prices. Every time you buy and sell the value of the Bitcoin can be different and is based upon whatever the market is at that time so I know there has to be federal regulations which are in place that they have to comply with. Do they not have to be FDIC insured to accept money for trades, which is basically what they are doing when a person purchases or sell Bitcoin. Does XXXX XXXX not apply here? There are countless numbers of customers just like me who definitely need someone to interact on their behalf and prevent this company from doing this to anyone else.

Company response to consumer: Closed with explanation