Consumer complaint received 2022-05-26
Company: Coinbase, Inc.
State: OH
Product: Money transfer, virtual currency, or money service
Sub-product: Mobile or digital wallet
Issue: Fraud or scam

Complaint:
Issues for review : 1. Coinbase CAN NOT deny that it has fully identified and verified Complainant 's ID by the virtue of multiple streams of correspondence in which they referred to me by NAME and email address at all times, in addition to Screenshots previously provided to CFPB and other Agencies demonstrate this fact to the degree that no further burden of proof is lawfully needed. It then becomes painfully clear that respondent Coinbase, even after receiving full ID verification INCLUDING the requested and sent " selfie '' in the specific method Coinbase requested, is merely attempting to extend the unlawful withholding of assets by divers means of requesting even more verification when they have evidentarilly DEMONSTRATED by their own communications there is no legal doubt that Coinbase reasonably KNOWS that I am the original account holder who opened a secondary account using the SAME timestamped credentials. Therefore, each DAY they fail to release assets as directed and demanded multiple times, the Complainant alleges they are committing a separate act criminal conversion in conflict with and in violation of their own rules : " 2.6. Digital Asset Custody and Title. All Supported Digital Assets held in your XXXX XXXX XXXX are custodial assets held by Coinbase for your benefit, as described in further detail below.

2.6.1. Ownership. Title to Supported Digital Assets shall at all times remain with you and shall not transfer to Coinbase. As the owner of Supported Digital Assets in your XXXX XXXX XXXX, you shall bear all risk of loss of such Supported Digital Assets. Coinbase shall have no liability for Supported Digital Asset fluctuations or loss. None of the Supported Digital Assets in your XXXX XXXX XXXX are the property of, or shall or may be loaned to, Coinbase ; Coinbase does not represent or treat assets in Users XXXX XXXX XXXX as belonging to Coinbase. Coinbase may not grant a security interest in the Supported Digital Assets held in your XXXX XXXX XXXX. Except as required by law, or except as provided herein, Coinbase will not sell, transfer, loan, hypothecate, or otherwise alienate Supported Digital Assets in your XXXX XXXX XXXX unless instructed by you. 
2.6.2. Control. You control the Supported Digital Assets held in your XXXX XXXX XXXX. At any time, subject to outages, downtime, and other applicable policies, you may withdraw your Supported Digital Assets by sending it to a different blockchain address. As long as you continue to custody your Supported Digital Assets with Coinbase, Coinbase shall retain control over electronic private keys associated with blockchain addresses operated by Coinbase, including the blockchain addresses that hold your Supported Digital Assets. '' Complainant has evidence that even the extraordinary step of providing a " selfie '' has been uploaded to respondent Coinbase in accordance with the specific terms of request in which Complainant declared " Done ''. Evidence available via extensive email record and attachments. 

2. Significantly and consistent with like and similar complaints found at https : XXXX it is evidentarily found that respondent Coinbase committed a scam/fraud as using a pretext to unlawfully lock Complainant out of his account to begin with.

Significantly, respondent Coinbase alleges, without providing one shred of reliable, substantial and probative evidence that : 1 : Creditials were somehow " compromised '' on " XX/XX/XXXX ( while Complainant consistently monitored account to find NO such breach on the alleged date ) from an " unknown IP '' ( there is NO such thing as an unknown ID as any entry-level XXXX should know ), " using his account password, a 2-step verification SMS code sent to his verified phone number ''. We shall stop right there at this additional plain and obvious lie. While there is a slight possibility that an account password could be breached, there is NO possibility that the XXXX verification XXXX  code could be WITHOUT Complainant being made aware of this as it LOCKS Complainant OUT of his phone by virtue of a SIM-swap. 

Comlainant absolutely VERIFIED there has been NO breach of his 2-step verification by his phone provider who testifies in the following : " Your request ( XXXX ) has been updated. To add additional comments, reply to this email. 

Customer Care XX/XX/XXXX, XXXX XXXX Dear Valued Customer, Thank you for contacting XXXX Customer Service! 

We are sorry for the delayed response and if it took longer than you anticipated. Thank you for your patience as were experiencing higher than normal wait times.

2. Upon checking, there were no sim changes/swaps made on the account. We understand that account security and privacy is a major customer concerns. We take precautions to secure your data both online and offline. We always verify the account for any changes especially XXXX changes or port-out requests. Rest assured that we take precautions to secure your information and the information provided will be kept strictly confidential. '' 3. Therefore, in addition to the impossibility that there was a " hack '' from an " unknown IP '' which CAN NOT EXIST ( nor have they provided credible factual evidence this ever occurred ) '', this definitively PROVES Coinbase is laughing in the face of the XXXX Attorney General 's Office who is charged with upholding against offenses made by Coinbase. The respondent used this and other divers methods to unlawfully DEPRIVE account holders of their rightful assets. 

Much more is available via evidentiary direct email threads and the website https : XXXX of which derives much evidence from https : XXXX Also see the XXXX  record of unlawful locking out of account holders ' assets at XXXX : XXXX : Pattern of Complaint : Coinbase came to XXXX XXXX attention in XX/XX/XXXX. A review of the companys complaints was completed in XX/XX/XXXX and again in XX/XX/XXXX. Based on XXXX files this company has a pattern of complaints from consumers who state they are locked out of their accounts, even after providing required information or updates. Consumers also state they have difficulty reaching the company. 

XXXX is in the process of contacting Coinbase, so that they may address the issues listed above. 

Complainant XXXX XXXX respectfully moves this XXXX XXXX properly Investigate Coinbase for XXXX and/or criminal conversion, and to REQUIRE Coinbase provide some evidence above mere allegations used as a pretext for unlawfully withholding assets. All evidence on record for any rebuttal. 



Upon extensive teleconference with a CFPB Agent on XXXX XX/XX/XXXX pursuant to respondent Coinbase 's reply, said Agent who has stated he has left an internal memo has found the original Complaint ID XXXX was closed prematurely without allowing Complainant to even have the opportunity to file an evidentiary rebuttal to the allegation of Fraud or Scam. It is generally understood there is a distinct possibility of one so charged would continue with this behavior if unchecked by evidence. The CFPB Agent then advised I file a supplemental Complaint which relates back to Complaint ID XXXX in the interests of justice and gives rise to this filing. 

Piercing the thin veil of a defense that Coinbase presented herein, not dissimilar to like and similar rationales for what Complainant alleges reaches the evidentiary level of criminal conversion, the XXXX XXXX  has given Coinbase an " F '' Rating with the following relevant Alert : XXXX record of unlawful locking out of account holders ' assets at XXXX : XXXX : Pattern of Complaint : Coinbase came to XXXX XXXX attention in XX/XX/XXXX. A review of the companys complaints was completed in XX/XX/XXXX and again in XX/XX/XXXX. Based on XXXX files this company has a pattern of complaints from consumers who state they are locked out of their accounts, even after providing required information or updates. Consumers also state they have difficulty reaching the company. 

Like and similar unlawful conduct rises to the level that our CFPB is fully encouraged to promptly act to preserve the rights of Complainant and other account holders, and Complainant respectfully moves the CFPB to diligently pursue this matter and allow proper rebuttals of any spurious evidence presented by Coinbase.

Company response to consumer: Closed with explanation