Consumer complaint received 2025-09-10 00:00:00
Product: Money transfer, virtual currency, or money service — Virtual currency
Issue: Fraud or scam — 
Company: Coinbase, Inc.
State: TX

Complaint narrative:
Respondent Company : Coinbase , Inc. ( Coinbase platform ) Nature of business : Digital currency exchange and wallet service Timeline and Key Facts Initial purchase and hold on funds I used Coinbase to purchase cryptocurrency on their platform. 
After the purchase, Coinbase placed a hold on funds, preventing me from transferring assets out of Coinbase to my own cold wallet. 
I was told by Coinbase agents that the hold was in place for my protection and related to fraud controls. 

Requests for release and 2FA requirement I contacted Coinbase support multiple times requesting release of the hold. 
I was told that I needed to complete another two-factor authentication ( 2FA ) verification to release the hold. 
I explained that I had completed a 2FA verification a year prior ; Coinbase agents insisted that another 2FA verification was required to proceed. 

2FA verification completed and promised release timeline I completed the additional 2FA verification on XX/XX/XXXX at XXXX XXXX  CST. 
A Coinbase representative explained that it would take up to 48 hours to release the hold, after which I could transfer from Coinbase to my cold wallet ( or have a representative release the hold if the 48-hour window had not fully elapsed ). 

Failure to release within the stated window I waited until Friday, XX/XX/XXXX at XXXX XXXX  CST, which exceeded the stated 48-hour window. 
The hold had not been released, and I still could not transfer funds out of Coinbase to my cold wallet. 
I contacted Coinbase again and spoke with a representative named XXXX regarding case number XXXX. 
XXXX advised me to allow Coinbase additional time to clear the account, despite the prior 2FA verification and the 48-hour window having passed. 
I have informed Coinbase that I completed the required steps twice, but the funds remain blocked from withdrawal. 

Regulatory contact and concerns I reported the situation to the U.S. Securities and Exchange Commission ( SEC ), which advised me to contact the FTC and the Consumer Financial Protection Bureau ( CFPB ) regarding this matter. 
Coinbase states the hold is for protection against fraud and does not allow me to transfer out, yet Coinbase continues to permit purchases on the platform. 

Issues and Observations Inconsistent treatment of funds : * * Coinbase allows me to purchase additional cryptocurrency on the platform while continuing to block outbound transfers of existing funds. This appears inconsistent with a risk-protection hold and raises concerns about possible mismanagement of funds or unreasonable restrictions. 
Lack of transparency and delayed resolution : * * The 48-hour timeline was not met, and I was repeatedly told that more time was needed without a clear escalation path or written confirmation of the reason for the continued hold. 
Repeated verification requests : * * The requirement to complete a new 2FA verification after a long period ( a year since the last ) appears inconsistent and burdensome, with no documented policy provided to me. 
Communication gaps : * * I received conflicting information from different representatives ( e.g., release within 48 hours vs. more time or hold still in place ). Case number XXXX was created, but there has been insufficient resolution and documentation to support the decision to maintain the hold. 

What Im Asking For A clear explanation of the specific reason for the ongoing hold on my account and the exact policy Coinbase is applying. 
A concrete, enforceable timeline for when the hold will be released, with status updates if delays occur. 
An option to transfer or withdraw funds to an external wallet ( cold storage ) without unreasonable delay or discretionary holds, assuming no active fraud flags on my account. 
A thorough audit of any fraud flags, their basis, and the steps Coinbase is taking to verify legitimate ownership and access to the account. 
A copy of Coinbases policy governing mandatory holds, 2FA verification requirements, and the circumstances under which a hold may be extended beyond the initial 48-hour window. 
Confirmation that Coinbase will not impose new or additional holds on funds that were previously not restricted, solely because a user purchases additional crypto on the platform. 

Supporting Information Dates and times of 2FA verification : XX/XX/XXXX, [ year ], XXXX XXXX  CST. 
Claimed release window : up to 48 hours from XX/XX/XXXX, XXXX XXXX  CST. 
Observed status : Funds remain blocked from withdrawal as of XX/XX/XXXX, XXXX XXXX  CST. 
Case reference : XXXX ( as of prior conversations with Coinbase agents ). 


I have recording of call with XXXX but can't attach so if you will like I can email directly thanks for your help and look forward to hearing from someone.

Company response to consumer: Closed with monetary relief