Consumer complaint received 2025-08-18 00:00:00
Product: Money transfer, virtual currency, or money service — Virtual currency
Issue: Fraud or scam — 
Company: Coinbase, Inc.
State: CA

Complaint narrative:
Re : Significant Theft of Cryptocurrency Assets from Coinbase & XXXX Wallet On XXXX XXXX, I was the victim of a sophisticated phishing scam. I was led to believe I was speaking with Coinbase Security, who claimed there had been suspicious activity on my account. They advised me to update my security settings and to transfer my XXXX from Coinbase to my XXXX XXXX for safekeeping. Unfortunately, this interaction turned out to be fraudulent. As a result, both my Coinbase and XXXX XXXX accounts were compromised and drained. This theft has had a profound and devastating impact on my financial future and that of my family. 

Assets Lost XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Contacted Coinbase Escalation : I engaged with Coinbases Escalation team after a public announcement by XXXX XXXX CEO on X regarding a significant data breach ( $ XXXX ) involving bribed customer support contractors. XXXX said Coinbase would reimburse those who lost their funds due to the breach. Despite back-and-forth contact with XXXX at Coinbase XXXX XXXX providing detailed documentation of the scam, including ID/hashes, wallet addresses, email communications/headers, and my case then being escalated to XXXX of the specialized teams for further review, I received only a perfunctory reply XXXX weeks later stating I was not impacted by the breach and therefore not eligible for reimbursement. 

At all times related to this claim, I was an accountholder at the XXXX XXXX XXXX XXXX and licensed Money Services Business ( MSB ) Coinbase , Inc. , ( Coinbase ) and held in my account/wallet valuable cryptocurrency assets. Coinbase promotes itself as The most trusted cryptocurrency platform that is guided by XXXX best practices and that XXXX stored on our servers is covered by our insurance policy. I was aware of and relied on those representations of security in storing my assets on XXXX platform. Despite its self-promotion about how secure, reliable, and trustworthy its services are, though, customers assets at Coinbase are at risk of being fraudulently withdrawn, something of which Coinbase is well aware but has not taken adequate steps to prevent or remedy. 

Coinbase has had announced and unannounced breaches of data maintained on, and security of, its platform; leading to a variety of harms suffered by Coinbase account/wallet holders : support scams, penetrations of XXXX platform leading to SIM swaps, failure to block blacklisted destination addresses, and account takeovers. Coinbase is responsible for securing its platform and all internal and external cryptocurrency payment rails, which serve as the infrastructure that facilitates the transfer of digital currencies between parties. In this case, Coinbase failed to secure data maintained on its platform and failed to properly verify the authenticity and integrity of the cryptocurrency payment rail ( s ) that transferred cryptocurrency from my account/wallet to the destination address of the recipient of my stolen assets. Coinbases failure to design and implement adequate security measures on its platform and on the payment rails was a material factor in directly and/or proximately causing my loss. On XXXX XXXX, XXXX falsely advertised, faulty security measures failed me ; and as a result, I suffered the loss of cryptocurrency from my account/wallet that was valued at the time at approximately {$860000.00}.

Company response to consumer: Closed with explanation