Consumer complaint received 2026-01-08 00:00:00
Product: Money transfer, virtual currency, or money service — Virtual currency
Issue: Other transaction problem — 
Company: Coinbase, Inc.
State: MI

Complaint narrative:
On XX/XX/XXXX XXXX XXXX  EST my Coinbase account was accessed by an unauthorized user, despite having XXXX factor authentication setup. 
They hacker tried to transfer about {$50000.00} worth of crypto currency out of the account to a different wallet. This activity was flagged as suspicious and supposedly triggered a security evaluation. 
I was sleeping at that time. 
When I woke up around XXXX in the morning of XX/XX/XXXX, I saw text messages seemingly from Coinbase asking about this transfer being performed by me. I mistook those for phishing messages, because I get similar messages quite often. 
Shortly after I realized that my googlemail account password did not work anymore. It turned out that the hackers had gotten access to my XXXX account and thats how they then somehow had gotten access to Coinbase. 
I was able to recover the XXXX account from my recovery email account, and then I wondered if the coinbase text message was actually real. When I logged into Coinbase I realized in horror that my portfolio value had gone down from {$72000.00} to about {$50000.00}. 
I changed my coinbase password and contacted the coinbase customer support. 
I saw that the hacker had already chatted with the Coinbase " concierge '' about trying to get the funds transfered out, further posing as me. 
I immidetly informed the concierge that my account was compromised and that funds where missinig. At that time I though they were able send smaller amounts of cryptocurrency out of the account. 
I also checked the balance during that conversation with the concierge and it went down further to about {$40000.00}. 
I asked why the account balance is changing this much, since I just changed my password. They wrongly told me that " market fluctuations '' are to blame. I tried to tell them that this much movement is not market fluctuations, and was trying to make sense of the transaction history, looking for " send '' transactions, but I could not find any completed send transactions. 
I scheduled a phone call with the concierge, but the earliest available time was at XXXX the same day. When I saw my portfolio value had in the meantime dropped to {$35000.00} I locked the account. 
After being locked out, I had no access to the coinbase support team any more because the phone number provided told me to login and chat with the concierge. 
I had downloaded the complete transaction history of the past 6 months before locking the account, as it turns out, when not being able to send funds out of the account, they proceeded to do XXXX trades : Buy Bitcoin ( BTC ) with USD, convert BTC to Loopring ( LPC ), then sell LPC  to USD. Then buy BTC again. They did XXXX of these trades between XXXX and XXXX EST. 

I asked coinbase how the hackers were able to execute these extremely suspicious XXXX wash trades, especially after the account was already flagged for security concerns many hours earlier, and received no satisfying reply. 
They also told me that there is nothing they can do reversing the trades. 

In short : I lost {$37000.00} worth of crypto currency on Coinbase because their security system allowed access despite XXXX factor authentication and allowed XXXX completely idiotic and highly suspicious trades to " burn '' my money, and just shrug shoulders. Their customer service team is completely incompetent and instead of locking my account immidetly when learning that unauthorized access was or may still be happening, they continued to chat with me and let the hackers continue to do wash traders destroying about {$15000.00} which could have been prevented by proper safeguards on coinbases side.

Company response to consumer: Closed with monetary relief