Consumer complaint received 2024-07-21 00:00:00
Product: Money transfer, virtual currency, or money service — Virtual currency
Issue: Other transaction problem — 
Company: Coinbase, Inc.
State: TX

Complaint narrative:
I attempted to invest in XXXX with a plan to store it in cold storage. Starting on XXXX and going through the end of the year, I accumulated XXXX BTC. After a test transaction ( and one other XXXX XXXX XXXX  ), the ability to send crypto off of the Coinbase platform was revoked ( XX/XX/XXXX ). I contacted their support starting out weekly and then eventually monthly. I felt like the lead me on by saying on multiple occasions that my " account is being reviewed by a specialist team and my ability to send would be reinstated on X date ''. So, I continued to build up my position because I felt like Coinbase was reputable enough in the crypto space and I have not done anything shady whatsoever and would never do anything shady. Anyway, the investment value grew to over $ XXXX USD and I was starting to get nervous about 1 ) my assets being on a crypto exchange where I am considered to be an " unsecured creditor '' so long as the exchange is the custodian 2 ) the horrendous support. They have a tier 1 support that you can contact and they are usually quick to help and respond, but I was given exactly 0 insight into when my sending feature would be reenabled and why it was disabled in the first place. They even told me that for security reasons they couldn't talk about the details of my review. I opened up a formal Coinbase complaint on XX/XX/XXXX regarding my ability to send. On XXXX XX/XX/XXXX they finally got back to me ( after the deadline they have for responding to the complaint ) and they replied with " In that case, we explained that To safeguard against potential loss from an irreversible transaction, your account has been prohibited from sending cryptocurrency off the Coinbase platform until XXXX XX/XX/XXXX. In the meantime, you can still convert your crypto to cash and transfer the funds to your verified bank account. ". So, of course I ask for more details and get nothing. I own the Bitcoin and I want to store it in a multi-sig cold storage setup, who are you protecting from loss??? At various times I completed various questionnaires and verifications ( the same ones multiple times ), but it never led to anything. If you had $ XXXX locked in a bank account for some reason, the bank would likely be very communicative about it. Coinbase seemed like they were trying to tell me the same generic thing over and over again until I just went away. On top of that, it was never proactive. Clearly I had a half a XXXX dollar concern that I expressed multiple times, but I had to continuously bother them if I wanted to hear anything at all. Anyway, I didn't want to, but I sold XXXXBTC simply so that I could reduce my risk exposure to a company that I absolutely do not trust at all. I paid them $ XXXX in fees and because I sold, the short term capital gains tax is going to be over {$30000.00}. I'm not going to give up on sending the remaining, but once I get my BTC off of Coinbase I will never use their services again.

Company response to consumer: Closed with explanation