Consumer complaint received 2017-12-20
Company: Coinbase, Inc.
State: MD
Product: Money transfer, virtual currency, or money service
Sub-product: Mobile or digital wallet
Issue: Managing, opening, or closing your mobile wallet account

Complaint:
In XXXX of XXXX, I purchased one Bitcoin ( 1 BTC ) using my account on Coinbase, with the intention of making a long term investment. Approximately one year ago ( XXXX XXXX ), I determined that I had lost the two-factor authentication methods that allowed me to log into my online wallet at Coinbase. Unfortunately, I had also lost access to the phone number to which the account was associated when I opened it in early XXXX. I retain access to the associated email address and also my password, but Coinbase does not deem this to be sufficient to re-establish access. 

Four months ago ( XXXX XXXX ), I began the process to recover the account. I was told that by opening and new account and identifying myself using the same method ( a government ID ) and associating with the same bank account ( which requires access to the account ) I would be able to confirm my identity. Then, it would be possible to transfer the balance from the old account into the new one, and close the old account. 

Having completed these identification steps ( XXXX XXXX, XXXX ), I requested the balance transfer. On XXXX XXXX, a Coinbase representative responded and indicated that a resolution was imminent, stating : " Im working with a specialist to review and finalize your balance transfer. '' However, since this point I have received no further communication about the issue from Coinbase. ( Nine days have passed at the time of my submission of this complaint. ) I have attached a log of my communication with the company about this issue. 

In concern, I called their phone support line, and after three hours on hold was able to discuss the issue with another representative. This representative discussed the issue with their supervisor, but in response provided me exactly the same description of the issue. The supervisor would work with a specialist. The issue had been " escalated, '' although it is not clear what this means. I requested clarification, and was told be the representative that the issue " was in their hands '' ( referring to the supervisor ), but they did not indicate the name of the supervisor. They provided no written confirmation of the conversation, leading me to believe that they would not resolve the issue in a timely manner. 

As Coinbase abides by know your customer ( XXXX ) guidelines, they identified me when I opened my  account. They are presumably able to identify me again using the same methods, which I have completed and they have acknowledged. 

The company 's own representatives have indicated that the transfer of a balance between accounts that the same individual controls is a standard mode of account recovery. They have given no indication as to why this might be a technically involved operation, and it is hard to imagine how it could be more complex than a modification of the company 's internal ledger. It should thus be carried out in a reasonable amount of time. Coinbase 's representatives have behaved in an unusual way by failing to communicate any detail about this process, and instead offering unverifiable assertions about progress of the process. 

I am not the only individual I know of in this situation. Other users have been waiting on a resolution of this problem for up to several months. Given the prevalence of the issue among customer complaints, it appears that Coinbase may be engaging in a kind of opportunistic abuse of their customer base by refusing to acknowledge customer identity when it is not in their interest. I hope this is not the case and expect a swift resolution of my issue. I hope that the same standard is applied to others who are in the same situation.

Company response to consumer: Closed with explanation