Consumer complaint received 2026-01-23 00:00:00
Product: Money transfer, virtual currency, or money service — Virtual currency
Issue: Fraud or scam — 
Company: Coinbase, Inc.
State: NJ

Complaint narrative:
Coinbase.com failed to reimburse for unauthorized/fraudulant transaction On XX/XX/2026, I was the victim of a robbery in XXXX XXXX XXXX LA, XXXX my mobile phone and wallet were stolen. The perpetrator used the stolen device to access my Coinbase account. Between XXXX XXXX XXXX XXXX XXXX XXXXXXXX on XX/XX/2026, the attacker liquidated my cryptocurrency holdings and executed unauthorized XXXX XXXX XXXXXXXX ) withdrawals totaling approximately {$4600.00}. 

I reported this unauthorized activity to Coinbase on XX/XX/2026 ( within XXXX business of the occurrence and immediately after it came to my knowledge that there was fraud on my account. ).

1. Violation of Regulation E ( 12 CFR 1005.6 ) : Under the Electronic Fund Transfer Act ( EFTA ), consumer liability for unauthorized transfers is capped at {$50.00} if the loss is reported within two business days. I met this reporting requirement. Coinbase is refusing reimbursement based on internal " security policies, '' effectively attempting to waive my federal rights via their User Agreement. A private contract can not supersede federal statute regarding consumer liability limits. 

XXXX. Incorrect Definition of " Authorized '' : Coinbase denied my claim stating that because the device was physically stolen, they are not liable. This contradicts the legal definition of an " unauthorized electronic fund transfer, '' which is defined as a transfer initiated by a person other than the consumer without actual authority. The robbery of a physical access device does not convey " actual authority '' to the thief. 
3. Unfair, Deceptive, or Abusive Acts or Practices ( UDAAP ) : Coinbase failed to flag or stop a " total account liquidation '' event that deviated significantly from my historical user behavior. Furthermore, their initial investigation ( Case # XXXX ) was negligent. Coinbase.com initially denied my claim by falsely stating that there was unauthorized activity on my account on XX/XX/XXXX. However, if they had conducted a thorough investigation, they would have known that access was conducted by me to file my complaint for the fraud on my account. The clear evidence showed that the fraud occurred on XX/XX/XXXX. Thus, they did not conduct a thorough investigation and dismissed by claim ( XXXX ). They also admitted to an account takeover ( XXXX ). While they admitted this error in a subsequent emails ( attached ), they continue to refuse restitution. 

XXXX. Inconsistent Industry Standard : This event affected my accounts at XXXX XXXX XXXX XXXX XXXX XXXX, and XXXX. All three institutions reviewed the same police report and fact pattern, acknowledged the unauthorized access, and issued full refunds. Coinbase is the sole outlier, refusing to comply with standard banking fraud protections for the USD portion of the withdrawals. Additionally, I am also working with XXXX XXXX  and XXXX to resolve other fraud that has occurred on my accounts related to the same robbery. 

XXXX is the Coinbase.com account that the fraud occurred on.

Company response to consumer: Closed with monetary relief