Consumer complaint received 2024-11-04 00:00:00
Product: Money transfer, virtual currency, or money service — Virtual currency
Issue: Other transaction problem — 
Company: Coinbase, Inc.
State: CA

Complaint narrative:
Summary : My Coinbase account has been placed on restricted status with deposited cash locked, all connected bank accounts removed, and no reason given by customer service after repeated follow-ups, calls, emails, keep missing multiple 3-day processing time estimates. Ive been a Coinbase customer for several years. The situation started on XX/XX/XXXX Coinbase processed two duplicate ACH withdrawals within minutes of each other from my bank account in error ( via the Plaid system, more details below ), instead of one ACH transfer, and then after funds settled they restricted my account and removed all connected bank accounts. 

I have two cases open on this, the original one is XXXX and the new one that a customer service rep opened on XX/XX/XXXX is XXXX. Their customer service email and phone communications support continue to copy/paste the same thing, with no actual information or resolution. Happy to send whatever other supporting documentation needed, id ( already reverified id ), source of funds, proof of taxes paid on source of funds. 

Full sequence of events : XX/XX/XXXX : I attempted to initiate a {$5000.00} ACH transfer from XXXX XXXX XXXX  XXXX XXXX account into my Coinbase account using the Coinbase website ACH transfer process run by their XXXX party provider, Plaid. The purpose of this transfer was to buy {$5000.00} worth of XXXX for investment purposes. I have made a few deposits and purchases on Coinbase using this ACH method over the last XXXX months successfully with no issues. 

On the first attempt to use the ACH transfer option on XX/XX/XXXX, I received an error message pop-up window on Coinbase that my bank account had " insufficient funds '', so I double checked my XXXX XXXX XXXXXXXX bank account and confirmed that I did have more than enough funds to cover the transfer. I went back to Coinbase and tried again, and again it said " insufficient funds ''. I stopped and then when I checked my bank account a short while later, I could see XXXXXXXX XXXX XXXX Coinbase withdrawals were pending from my bank account, processed within minutes of each other. 

I immediately called Coinbase customer service ( on morning of XX/XX/XXXX ) to report the issue ( that is a separate case ) as I had only intended on transferring XXXX  XXXX not XXXX  XXXX. I was told at this point they had other customers reporting the exact same duplicate withdrawal problem that morning with the XXXX XXXX service. Coinbase customer service told me on that call that there's nothing they can do but wait for both transfers to clear to retrieve some of the funds back and suggested that I use the wire transfer option instead next time for amounts this large XX/XX/XXXX : I waited until XX/XX/XXXX for the XXXX transfers to settle into my Coinbase count and then logged back in to set up a small wire transfer from back to my same account at XXXX XXXX XXXX to get back the extra funds they had mistakenly transferred and was going to purchase the original {$5000.00} in XXXX I had originally planned. 
Restriction of Account : I initiated a small test wire transfer of {$170.00} back to my same XXXX XXXX XXXX account, to make sure the wire system worked as it was first time using It ( vs XXXX ). Coinbase rejected this wire transfer immediately, removed all my connected bank accounts, and then restricted my whole account from receiving or sending funds, adding bank accounts, trapping my {$10000.00} there. 

I immediately reported this entire sequence of events to the phone customer service and filed my case # XXXX on XX/XX/XXXX and received no clear answer on why they had restricted my account. They told me to check back in XXXX business days. I waited and checked back in 3 days, no update, no information, the agent assured me they had " expedited '' their internal team to review, and to check back in another 3 days. Another 3 days, still no answer. 

XX/XX/XXXX : In response to a tweet I wrote complaining about the lack of response, the customer service on XXXX, wrote back that they had escalated the case, assigned it a new case number XXXX, and that I should receive an email shortly. I then received an email from help @ coinbase.com asking me to re-upload my ID and take a selfie in order to re-verify my identity, which I was able to do successfully. 

They then sent an email saying it would take XXXX business days to review my account, and wrote While your account is under review, you are still able to sell crypto and withdraw cash. 

This is also incorrect as I am still unable to withdraw cash as they removed all connected bank accounts on XX/XX/XXXX, and I am still restricted me from adding any bank accounts.

Company response to consumer: Closed with monetary relief