Consumer complaint received 2025-02-03 00:00:00
Product: Money transfer, virtual currency, or money service — Mobile or digital wallet
Issue: Unauthorized transactions or other transaction problem — 
Company: Coinbase, Inc.
State: MI

Complaint narrative:
Subject : Formal Complaint Regarding Technical Issues and Financial Loss Due to Platform Glitch To Whom It May Concern, I am writing to file a formal complaint against Coinbase regarding a significant technical issue on your platform that caused me financial harm. On XX/XX/year>, and XX/XX/year>, I attempted to sell my XXXX  XXXX on Coinbase but was unable to complete the transaction due to a platform glitch. This technical issue disrupted my ability to execute a trade as intended, resulting in a financial loss of approximately {$100000.00}. 
Incident Details : Asset ( s ) : XXXX XXXX Platform Issue : While attempting to sell my asset, I reached out to Coinbase support and was informed by a chat agent that a glitch was affecting the platform. The representative communicated the following : XXXX, I know this glitch is frustrating. Our dedicated team is working hard to resolve it. 
While we don't have all the details yet, please know we're giving it our full attention. We appreciate your patience and understand how important this is. We'll get everything back on track as quickly as possible. 
Financial Impact : As a result of this issue, I was unable to sell my XXXX  XXXX at the desired profit price. This caused a financial loss of {$100000.00} due to the failure to execute my trade at the correct market price. 
Contributing Factors : The platform 's glitch caused several issues that severely impacted my ability to make informed decisions : 1. Delayed Order Execution : The glitch delayed my ability to execute the trade in a timely manner. By the time the issue was resolved, the price of the asset had changed, resulting in missed opportunities and loss of profits. 
2. Incorrect Price Information : The glitch caused inaccurate price displays, which led me to believe the market had not moved as expected. This inaccurate data prevented me from making the sale at the optimal price.

3. Failed Transactions and Missed Opportunities : The technical issue also caused failed transactions, preventing me from executing orders at the desired price. In fast-moving markets like cryptocurrency, such delays can have significant consequences.

4. Poor Decision Making Due to Unreliable Data : The combination of delayed execution, incorrect pricing, and transaction failures led to poor decision-making. 
Additionally, I was forced to sell my XXXX coin, which I had been holding onto for a long time, due to the uncertainty created by the technical issues. 
Supporting Evidence : I have attached screenshots showing the price increase during the period when I attempted to make the sale. Additionally, I have included proof that I sold my XXXX coin as a result of the uncertainty caused by the glitch. 
Concerns and Requested Resolution : This technical failure has caused me direct financial harm and has undermined my confidence in the reliability of the platform. Coinbase has a responsibility to provide a stable and functional service, especially when users are making important financial decisions. I am requesting the following to resolve this matter : 1. Financial Compensation : A reimbursement for the estimated {$100000.00} financial loss I incurred due to the failure to execute my trade at the desired price.

2. Explanation of the Issue : A clear and detailed explanation of the glitch that led to this issue, including its cause and the steps Coinbase is taking to prevent similar issues in the future.

3. Platform Improvements : Assurance that Coinbase will take measures to improve communication and transparency during technical issues, particularly when it affects users ability to execute trades. I would also appreciate a timeline for when such glitches will be fully resolved to prevent further disruption. 
I trust that you will address this matter promptly, and I look forward to receiving a resolution. 
Please provide me with a case number and keep me informed of any updates related to the investigation. 
Sincerely, XXXX XXXX Phone : ( XXXX ) XXXX Email : XXXX SECOND ISSUE LETTER : XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX XXXX XXXX XXXX, MI XXXX Phone Number : XXXX Email Address : XXXX Date : XXXX XXXX XXXX  +UTC Consumer Financial Protection Bureau ( CFPB ) XXXX XXXX XXXX XXXX XXXX  XXXX DC XXXX OR Securities and Exchange Commission ( SEC ) XXXX XXXX XXXX XXXX XXXX, DC XXXX Subject : Complaint Against Coinbase for Unintended Transaction Confirmation, Mishandling of Digital Assets, and Seeking Damages Dear Sir/Madam, I am writing to file a formal complaint against Coinbase for their mishandling of my digital asset transaction, failure to provide adequate protections under applicable consumer protection and financial regulations, and the resulting damages I have incurred. 
Incident Overview On XXXX XXXX XXXX  +UTC, I attempted to check the conversion rates of an ERC-XXXX token, XXXX, within my Coinbase Wallet. During the process, I did not intend to confirm a transaction. Instead, I navigated to another browser tab. When I returned, the transaction was automatically confirmed without my explicit consent. You can see that I tried to check how much XXXX XXXX was worth, but it was declined as the entire amount had already been processed. 
The asset in question, XXXX XXXX, valued at {$2800.00} USD, was transferred from my Coinbase Wallet to the Coinbase platform. After researching, I discovered that XXXX is an ERC-XXXX token, which, according to Coinbases asset recovery policy, qualifies for recovery as long as it does not pose a risk to the platform or the user. 
Despite these findings, Coinbase has not adequately responded to my requests to resolve this issue or provide access to my funds. 
Regulatory Concerns I believe Coinbases handling of this transaction violates several consumer protection laws and regulations, as outlined below : 1. Electronic Fund Transfer Act ( EFTA ) : The transaction was not explicitly authorized, as I did not confirm it manually. 
The auto-confirmation feature lacks transparency and violates protections under the EFTA, which requires clear user consent for electronic transactions. 
2. Consumer Protection Laws ( CFPB Guidelines ) : Coinbases failure to provide clear instructions, coupled with their inadequate user interface design, constitutes a violation of CFPB guidelines that prohibit unfair or deceptive trade practices.

3. Terms of Service Breach : Coinbases Terms of Service should ensure a clear, user-friendly transaction process. The auto-confirmation mechanism appears to breach their own policies by bypassing explicit user consent.

4. Asset Recovery Policy : Coinbase states on its Asset Recovery page that users can recover ERC-XXXX  and BEP-XXXX  tokens unless the tokens pose a risk. Since the funds originated directly from Coinbase Wallet, there is no indication of a risk to the platform or my account.

5. Data Protection and Privacy Laws : In my correspondence with Coinbase, I provided sensitive documents, including my State ID and Social Security Number ( SSN ), as requested for verification. 
Coinbase has a legal obligation under the Gramm-Leach-Bliley Act ( GLBA ) to handle and secure this information responsibly. 
6. Unfair Trade Practices : By designing a system that automatically confirms transactions without user approval, Coinbase has potentially engaged in deceptive practices that adversely impact its users. 
Damages Incurred As a XXXX XXXX XXXX male, I rely on my digital assets for medical expenses. 
The funds in question, which constitute my last savings, were intended for critical medical procedures. Coinbases mishandling of this transaction has caused financial distress, emotional stress, and physical harm, which I believe should be compensated. 
Furthermore, I seek recovery of my funds ( XXXX XXXX, valued at {$2800.00} USD ) and any additional costs incurred due to Coinbases negligence, including lost opportunities for timely access to funds, additional administrative fees, and the emotional distress caused by their failure to act in a reasonable time frame. 
Requested Resolution I respectfully request that the CFPB/SEC investigate Coinbases practices and take the necessary steps to : 1. Recover my funds ( XXXX XXXX, valued at {$2800.00} USD ). 
2. Ensure Coinbase updates its platform to comply with consumer protection laws, preventing auto-confirmation of transactions without explicit user consent.

3. Address the lack of timely support and transparency in their asset recovery process.

4. Compensate me for the damages caused by their failure to act and respond promptly. 
I have attached supporting documentation, including transaction details and screenshots from the XXXX website, showing that XXXX qualifies for recovery under Coinbases policy. 
Thank you for your attention to this matter. I look forward to hearing from your office regarding the next steps. 
Sincerely, XXXX XXXX Phone Number : XXXX Email Address : XXXX XXXX

Company response to consumer: Closed with monetary relief