Consumer complaint received 2025-03-28 00:00:00
Product: Money transfer, virtual currency, or money service — Virtual currency
Issue: Other transaction problem — 
Company: Coinbase, Inc.
State: CA

Complaint narrative:
Please find below a detailed timeline of events regarding the unauthorized access to my Coinbase account and the theft of approximately {$26000.00} in cryptocurrency assets. I have also attached supporting documentation including complete correspondence with Coinbase support, transaction records substantiating the stolen funds, and an analysis of the critical security and process failures that enabled this theft. 
As you will see, the evidence clearly demonstrates negligence on the part of Coinbase in failing to adequately secure my account, adhere to industry-standard breach response protocols, and promptly mitigate further losses upon being notified of suspicious activity. Coinbase 's actions directly facilitated the theft of my funds. 
Timeline of Events : 1. XX/XX/year>2025 ( Case # XXXX ) XXXX XXXX & XXXX XXXX PST : I received XXXX alerts about password changes I did not initiate. 
XXXX XXXX & XXXX XXXX PST : XXXX alerts received stating my account was undergoing a security review. 
XXXX XXXX PST : I logged into my account to investigate. Immediately upon logging in, I observed unauthorized crypto transfers in progress. 
XXXX XXXX PST : I urgently attempted to lock my account, but {$10000.00} in XXXX had already been transferred out in two transactions of {$10000.00} and {$990.00} before the lock took effect. No email notifications about these transfers were received from Coinbase. 
o All of the transfers with the exception of the ones I witnessed on XX/XX/year>2025 took place prior to my login, which was confirmed in an email from Coinbase XXXX XXXX PST : I received an email from Coinbase with instructions to unlock my account to regain access and assist with their investigation. Although inadvisable given the active breach, I followed their guidance. 
2. XXXX XXXX 2025 After unlocking my account on XX/XX/XXXX per Coinbase 's instructions, I changed my password and enabled additional security measures. 
Over the next several days, I logged into my account, made security updates, including a password change, and purchased additional crypto, all during a supposed active investigation. 
3. XX/XX/year>2025 ( Case # XXXX ) From XXXX XXXX to XXXX XXXX PST, I received a series of new XXXX security alerts about account reviews and " delayed transfers '' processing. I had not authorized any transfers. 
XXXX XXXX PST : I replied to the suspicious XXXX alerts to notify Coinbase that I did not initiate any transfers. 
XXXX XXXX PST : I immediately logged into my account again and re-locked it. 
XXXX XXXX PST : On a call with Coinbase support, I was informed that a fraudulent Chime bank account had been connected to my account. The agent stated this was Coinbase 's fault and I would be reimbursed. They later back-pedaled and incorrectly stated no funds were transferred. 
XXXX XXXX PST : On another call, I alerted Coinbase that I was no longer receiving any emails from them. The agent added a new email address but still did not provide any of the requested account information or transaction details. 
4. XXXX XXXX 2025 On XX/XX/XXXX, I called Coinbase again to check the status of their investigation. I still did not have access to my account statements. 
On XX/XX/XXXX, I finally received partial transaction logs, but they were sent to my compromised email address that I could no longer access. Coinbase did not respond to my requests to resend this information to my secondary email. 
On XX/XX/XXXX, upon speaking to Coinbase representatives and finally gaining access to my full account history, I discovered Coinbase had allowed the transfer of nearly all my remaining funds ( approx. {$15000.00} ) to the unauthorized XXXX account. This occurred after I had already notified them of the fraudulent account and they had assured me transfers had been halted. 
Key Failures by Coinbase : 1. Instructing me to unlock my account amid an active breach, against all standard security protocols, directly enabling the second theft. 
2. Failing to block the fraudulent XXXX bank account after being alerted to it, allowing a further {$15000.00} to be stolen. 
3. Neglecting to promptly provide me with critical account access and transaction records, preventing me from identifying and stopping the continued unauthorized activity.

4. Not adhering to proper safeguards that should have automatically prevented transfers to a newly added external account without additional verification.

5. Failing to alert me of highly suspicious changes to my account 's email, XXXX settings, and withdrawal addresses. 
6. Providing inaccurate information about the status of my funds and Coinbase 's responsibility in the breach. 
7. Disregarding clear opportunities to reverse the unauthorized ACH transfers during the 1-3 day processing window for such transactions. 
By any reasonable standard, Coinbase 's actions and inactions constitute a breach of its duty to protect user funds and respond appropriately to security incidents. But for Coinbase 's negligence, my losses would have been mitigated or avoided entirely. 
To remedy this matter, I hereby demand : 1. An immediate reimbursement for the full stolen amount of approximately {$26000.00}.

2. A detailed incident report and accounting of the failures that enabled this breach and an explanation of what steps Coinbase is taking to prevent such occurrences in the future.

If I do not receive a satisfactory response within 10 business days, I reserve all rights to escalate via regulatory agencies and legal action.

The evidence speaks for itself. I trust Coinbase will take responsibility and make this right. I await your prompt response. 
Sincerely, Attachments : Full email and XXXX correspondence logs Detailed timeline of security breach and Coinbase 's mishandling Complete account statements verifying unauthorized transfers Formal analysis of Coinbase 's security and procedural failures Outline of failed attempts to get information and assistance from Coinbase

Company response to consumer: Closed with explanation