Consumer complaint received 2025-08-24 00:00:00
Product: Money transfer, virtual currency, or money service — Virtual currency
Issue: Other transaction problem — 
Company: Coinbase, Inc.
State: GA

Complaint narrative:
Subject : Formal Complaint Against Coinbase , Inc. for Failure to Prevent Unauthorized Transactions and Resulting Financial Loss To : Consumer Financial Protection Bureau ( CFPB ) Consumer Name : XXXX XXXX Email Associated with Coinbase : XXXX Coinbase Support Case Number ( XXXX ) : # XXXX, # XXXX, # XXXX, # XXXX by email I am writing to file a formal complaint against Coinbase , Inc. for gross negligence in managing a security breach on my account, which resulted in a direct financial loss of {$17000.00} USD. Despite my timely notification and their stated security procedures, Coinbase failed to take the necessary actions to stop fraudulent transfers that were in a " pending '' status. 

Summary of Events : On XX/XX/year>, an unauthorized party gained access to my Coinbase account. The perpetrator sold my cryptocurrencies, converting them to U.S. Dollars, and proceeded to add an unknown bank account to withdraw the funds. 

Immediately thereafter, the individual initiated XXXX ( XXXX ) unauthorized withdrawals from my USD wallet to this new bank account. The transactions were for the following amounts : {$4900.00} {$4900.00} {$4900.00} {$3000.00} On the same day, XX/XX/year>, as soon as I detected this activity, I immediately contacted Coinbase support to report the fraud. At the time of my report, all four withdrawal transactions were clearly in " PENDING '' status. Following protocol, Coinbase then locked my account, supposedly to prevent further damage and stop the unauthorized activity. 

On XX/XX/year>, I received an official notification from the Coinbase team. In this communication, I was explicitly assured that the pending transactions would be canceled as part of the security procedure while my account remained locked. This communication gave me confidence that Coinbase had the situation under control and that my funds were safe. 

However, Coinbase completely failed to follow its own procedure and the assurance they provided me. Even though my account was continuously locked, Coinbase allowed all XXXX fraudulent transfers to complete, sending a total of {$17000.00} to the thief. 

My account remained locked and out of my control from XX/XX/year>, until XX/XX/year>. During this period, I was not offered a resolution or a refund for the funds I lost due to the company 's negligence. 

Key Failures by Coinbase : Failure of Timely Action : Coinbase failed to act on my fraud report in time to cancel the transfers, despite them being in a " pending '' status and having a clear window of opportunity to do so. 

Breach of Its Own Policies : Coinbase violated its own communicated security procedure by failing to cancel the pending transactions after locking the account and notifying me that they would do so. 

Direct Negligence Causing Financial Loss : The loss of my funds was not an unavoidable consequence of the initial hack, but the direct result of Coinbase 's inaction and procedural failure. 

Desired Resolution : I request the CFPB 's intervention to hold Coinbase accountable for its negligence. I demand a full reimbursement for the total amount of the stolen funds, which is {$17000.00} USD, as the loss was directly caused by Coinbase 's failure to follow its own security protocols after my timely report. 

I possess documentary evidence to support every point in this complaint, including screenshots of the unauthorized transactions, the ticket numbers from my interactions with Coinbase support, and the communication from XX/XX/XXXX where I was assured the transactions would be canceled. I am fully prepared to provide this evidence upon request. 

Sincerely,

Company response to consumer: Closed with explanation