Consumer complaint received 2025-07-15 00:00:00
Product: Money transfer, virtual currency, or money service — Virtual currency
Issue: Money was not available when promised — 
Company: Coinbase, Inc.
State: WI

Complaint narrative:
I created a coinbase account with the intention of buying XXXX  and sending it to my own XXXX  address. I sent a photo of my drivers license, gave my name and other identifying information about myself including my social security number and got an email back from the company saying that my identification verification was successful. within the next XXXX hours I made XXXX deposits each of {$1000.00} to the platform and was made aware that I could buy crypto assets with these deposits but would need to wait a few days for the deposits to fully clear before I could make transactions with the XXXX  I was purchasing. I understood and accepted this risk in having my XXXX  held by coinbase at their own address for a few days before transferring it to my own. Then the next day I get an email about how I need to verify my identity, even though I already did this and was told it was successful, and then I get another email that says the hold on my account has been extended until XX/XX/XXXX, which was XXXX XXXX from the present time. I have contacted coinbase about what the reason for this was and received many vague and conflicting answers from them. I was first told that send the company a video of my face was a requirement for cryptocurrency transactions and then I was later told that it wasn't a strict requirement but if I did not do this I would have to wait XXXX XXXX before I could make a transaction with it and withdraw funds from my coinbase account. then I was later told that the face video thing was a standard requirement for all accounts to prevent fraud. But I was also told this was only being requested from me because my account was suspected of committing fraud, and their rationale for that was that I made a large amount of transactions on the day I made the account ( it was only XXXX, in the amount of {$1000.00} each ). It seems ridiculous that they would allow transactions in this amount if they believed it was indicative of fraud. The terms of service I agreed to state that would only request information like biometric data if coinbase believed it was necessary to prevent fraud and XXXX financing but I am being told many conflicting answers about this by them, including that its actually a standard requirement they have for all accounts, which is contradictory to the terms I agreed to which state they only request that if they deem it is necessary. I am not at all comfortable with providing that data to them and their terms of service say I can revoke this consent by closing my account but I can not close the account unless the balance is XXXX and i can not do anything with the funds in my account for XXXX XXXX according to them. I do not feel comfortable having my XXXX  assets held in an address I do not control for XXXX XXXX and would have never agreed their terms if I was made aware that their requirement for sending a video of my face to make transactions and withdraw my funds was a standard policy, and not a policy used only when they deem it necessary. It's not possible for me to revoke my consent from their terms by closing my account if an account balance of XXXX is required to close it and they have frozen my account. I do not feel I can trust anything I was told by this company when they gave me many conflicting answers but the final answer I was given was that this excessively long hold actually has nothing to do with the face video verification and that it is entirely because the " large '' transactions I made on a new account were suspected to potentially be fraudulent to having my account unable to withdraw funds for XXXX XXXX was a standard procedure by them and that it is entirely automated with no way to expedite it. I am also being told that during this period I can not sell my XXXX  for USD, so not only am I forced to trust coinbase to hold this for me for longer than I agreed to before transferring it to an address I own, I am also subject to large fluctuations in the price of this volatile asset for the next XXXX XXXX with nothing that I can do about it. I don't feel I can even believe any of the information I am given by this company and if what they are telling me is true, it is entirely wrong and unfair and doesn't adhere to their terms of service. I was then told that they had no reason to believe I was a scammer or engaging in fraud but that this was just an automated system and nothing could be done about it except to wait it out. I have already said that the information I was told is not in agreement with their terms of service I agreed to, but furthermore, their terms of service outline that these measures will only be taken if determined necessary by coinbase, and I am now being told by them that they have no reason to believe I am a scammer or have engaged in fraud but that I have no choice but to wait XXXX XXXX while an automated system imposes a hold on my account for preventing supposed fraud, even though I was told I was not suspected of engaging in fraud by coinbase. This is contradictory to their terms of service which states, " We reserve the right to refuse to process, or to cancel, correct, clawback, or reverse, any Digital Asset Transaction or Transfers in our sole discretion, even after funds have been debited from your account ( s ), in response to a subpoena, court order, or other government order ; or if we suspect the transaction may : involve money laundering, XXXX financing, fraud, or any other type of financial crime ; be erroneous ; or relate to a Prohibited Use or a Prohibited Business as set forth in the Prohibited Use Policy. In such instances, Coinbase will reverse the transaction and we are under no obligation to reinstate a purchase or sale order at the same price or on the same terms as the canceled transaction. '' If they do not believe I am engaging in fraud then they should not be putting a hold on my account to prevent me from selling my XXXX  assets for USD and withdrawing the USD to my bank account or sending the XXXX  to my own address. I am then told that if the company had the ability to remove the hold and fix this situation, they would, but they dont, and I do not believe this to be true.

Company response to consumer: Closed with explanation