Consumer complaint received 2021-11-04 00:00:00
Product: Money transfer, virtual currency, or money service — Mobile or digital wallet
Issue: Fraud or scam — 
Company: Coinbase, Inc.
State: NH

Complaint narrative:
My name is XXXX XXXX XXXX, the owner of a coinbase account that was compromised. On XX/XX/XXXX at XXXX XXXX bitcoin valued at {$24000.00} was transferred from my account. On XX/XX/XXXX at XXXX to XXXX XXXX transactions were delayed, then at XXXX to XXXX XXXX transactions were quickly done, most were bitcoin transfers totaling about XXXX bitcoin valued at that time {$24000.00}. In one minute alone done multiple times up to 18 transfers were done. Also, {$100.00} and {$200.00} purchases of bitcoin were completed with my debit card as well as a {$1000.00} bitcoin purchase was done with my XXXX XXXX XXXX XXXX checking account. I rushed to my bank that next day, XX/XX/XXXX and my bank, stopped payment on the {$1000.00} check. 
I did not find out about all this until the next morning, XX/XX/XXXX. That morning I tried to create a text message and it showed pending. I thought maybe my plan expired so I tried signing into my XXXX XXXX account and learned my password was changed. I then opened my laptop to go to my XXXX e-mail, and again my password was changed. At that very moment I just knew it had to be a Coinbase compromise since it's my only account with substantial funds. I immediately tried signing into my Coinbase account and learned that password was also changed. 
Coinbase claims to have the best security which is why I trusted them with so much money. They let me down. They say they have never been compromised, just their customers. Isn't that the same? 
I first recovered my e-mail address after a couple hours of XXXX  tech support. That is when I first got to examine the damage done to my Coinbase account. I saw approximately XXXX emails of sent bitcoin and purchases, some in my trash folder. Next, also on XX/XX/XXXX I locked my XXXX account and filed a case/claim with XXXX, XXXX # XXXX. I began receiving emails from Coinbase demanding I cover the {$1000.00} check my bank refused to honor or they would recover it from my Coinbase account. 
Over the course of the next few days they reached out to me to tell me how to recover my hacked account. I sent them pictures with myself holding up signs with " Coinbase Verification '' and my driver 's license. On XX/XX/XXXX a week later at approximately XXXX they gave me limited access to my account and I learned they recovered the {$1000.00} from funds left in my Coinbase account I didn't think I still had. They did it just minutes before they gave me access to my account. XXXX required me to create a new password and use SMS 2 factor authentication, which I've always used to begin with. Seems rather strange they would request I go back to the same sign in method that may have cost my entire savings. They obviously do not care to protect custodial accounts or they would have forced customers to change sign in procedures to a more secure method. Customers trusted them. I had to do all this to create new password but the scammer didn't have to do any of it. If you forget your password in any account with so much money shouldn't the company be very careful and make darn sure it's you. Why did they require scans of both sides of my drivers license ID when I opened the account years ago? I thought it was for security, guess they didn't think so. 
On XX/XX/XXXX four transactions were completed and my balance is now {$81.00}. I removed my bank accounts and my XXXX account and they disabled purchases. Most of the 283 transactions say sent but not completed. Today, 14 days from the attack some 82 transactions of the original 283 are now completed. I can not get through to a live person or email a real person to find out if the rest could be blocked. I have to just sit and watch the damage finalize. If I only knew what I know today, I would run, not walk, from my coinbase account. I highly suspect that Coinbase was compromised, my sensitive information was stolen, used to change my XXXX email account password, change my XXXX XXXX XXXXcount password, and port my phone number to a new carrier. Then the scammer changed my Coinbase account password by clicking " forgot password '' and use my e-mail account access and my phone number access for SMS 2 factor authentication to create new password, disable 2 factor authentication and access my Coinbase account. Then it was easy to steal almost all my bitcoin as well as make new bitcoin purchases. Not surprising, my only accounts affected were accounts connected to Coinbase. I've researched this and the exact thing has happened the same way to possibly thousands of others going back to over a year. 
I just have to wonder what is wrong with Coinbase security. How could they continue to allow this to go on for so long without making a change to secure their custodial accounts? Why aren't their red flags that lock accounts for suspicious activity like every other institution has. I certainly do not make hundreds of transactions in an hour. Everything that happened is a red hot red flag any institution would have stopped except them. I just have to wonder what their involvement is. I have never received any phishing e-mails or texts from anyone impersonating Coinbase until after this breach. I would never respond to any such attack, NEVER! I do not do any social networking or give my sensitive information out to anyone. 
I've read Coinbase blames the user for falling for phishing attacks claiming they are not responsible for third party attacks. Again, I have never ever responded to a phishing email or text and I've been using technology for decades. Another point worth consideration is, How would the scammer know I was worth the trouble? How did they get my sensitive information? 
I still hold a glimmer of hope I can get my {$24000.00} back. It is so much money to our family. We care for our XXXX and have an XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Thank you so much for your time spent reading my complaint, it means so much to me. Sincerely, XXXX XXXX XXXX

Company response to consumer: Closed with explanation