Consumer complaint received 2025-06-23 00:00:00
Product: Money transfer, virtual currency, or money service — Virtual currency
Issue: Fraud or scam — 
Company: Coinbase, Inc.
State: UT

Complaint narrative:
I invested over {$200000.00} via bitcoin to a stock trading platform called XXXX XXXX. They indicated that they had a platform where you could simulate trades by their copy experts. 

I had a person that goes by the name of XXXX XXXX that was trading my money by simulating the trades he made. My account balance grew to approximately {$450000.00}. I requested a withdrawal of {$500.00} and it was granted. I was told my money was always available to withdraw. I was told that at the time of withdrawal a 20 % commission would be paid to the " copy trade expert ''. 

When i requested a much bigger withdrawal of {$50000.00} i received an email stating that their commission payout policy had changed and that in order to withdraw funds I first needed to pay the 20 % commission to the copy trade expert ( XXXX XXXX ) before they would grant my withdrawal request. At this point i knew it was a scam. I was a victim of what I now know is a pig butchering scheme. 
At all times related to this claim, I was an accountholder at a United States-based cryptocurrency exchange 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 Industry best practices and that Cryptocurrency 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 Coinbases 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reliable, and trustworthy its services are, though, customers assets at Coinbase are at risk of being fraudulently withdrawn -- something of which Coinbase is well aware but has not taken adequate steps to prevent or remedy.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 Coinbases 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. Commencing on or about XX/XX/year>. 

Coinbases 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 {$200000.00}. 
I seek, among other things, restitution, compensatory damages, and equitable relief for the harm I have suffered, as I hold Coinbase accountable for platform breakdowns, failures in security design or implementation, and statutory/common law breaches that permitted/assisted the theft of the personal assets I held at Coinbase.

Company response to consumer: Closed with explanation