Consumer complaint received 2025-12-01 00:00:00
Product: Money transfer, virtual currency, or money service — Virtual currency
Issue: Other transaction problem — 
Company: Coinbase, Inc.
State: UT

Complaint narrative:
Date : XX/XX/year> XXXX lost : {$30000.00} Actions : Requested for reimbursement but denied. 

My Coinbase account was accessed without authorization on XX/XX/year>, resulting in approximately {$30000.00} in losses through rapid and continuous losing trades. These transactions were not initiated by me, and they occurred despite my having the two-factor authentication ( 2FA ) enabled through sms. I didn't get any notifications or alert during the unauthorized transactions. 

Even though my account was accessed from unknown IPs, no crypto/money was withdrawn to an external wallet. My entire balance was drained through unauthorized repeated trading losses from which Coinbase platform gained through trading fees ( ~more than {$4000.00} ) and through my losses in transactions. Coinbase has refused to reimburse my losses even though the unauthorized actor caused trading losses to my account while Coinbase platform profited financially. 

Immediately after discovering the unauthorized activity, I contacted Coinbase Support. I was informed over the phone that a full investigation report would be provided after their thorough review. In subsequent email correspondence, the support team stated that they can't reimburse but if I require a copy of the official investigation report, I should reply to their message. When I did, Coinbase support responded that they could not share internal investigation reports or security-related details due to privacy and security reasons. Later, Coinbase Support mentioned they could provide a high-level summary of findings. However, when I requested that high-level summary, my case was abruptly closed without any explanation. This sequence of events gives the impression that Coinbase is intentionally avoiding transparency and withholding key findings necessary to understand the cause of this security breach and unauthorized account transactions.

Coinbases final communication stated that the loss was due to my own failure ( the SMS 2FA authentication I had wasnt " proper '' ), and since no funds were transferred outside of Coinbase, they wont reimburse my losses.

I also want to add that, after unlocking my Coinbase account I found an unknown bank account linked to my profile and attempted to withdraw {$5200.00} ( although It was an unsuccessful attempt ). When I asked Coinbase to identify the bank or account details so I could notify those entities of fraud, Coinbase refused, citing privacy policies. This refusal prevents me from reporting these fraudulent account to the bank and creates ongoing risk of further financial harm.

Despite clear evidence of unauthorized access, including unknown IP access, unknown linked payment account, rapid high-risk trades inconsistent with my activity, and failure of 2FA/device verification, Coinbases final communication denied reimbursement. Their stance ignores the fact that Coinbase financially benefited through trading fees and losses during the unauthorized activity while my portfolio was wiped out. The company is refusing to take responsibility for a security failure that occurred on their platform.

This incident has caused significant emotional and financial hardship for me and my family, as the majority of our savings were held in crypto assets. I am seeking CFPB assistance to require Coinbase to reimburse the {$30000.00} lost through unauthorized activity. I have filed a police report and an IC3 complaint. I am including those reports with this complaint, though some details may be incomplete because I did not have access to my account at the time of police report and did not understood how the funds disappeared and how much I actually lost. I have also attached documents of unauthorized transactions.

Coinbases refusal to reimburse my losses creates a loophole that harms consumers while allowing Coinbase to profit. I believe this is unfair, deceptive, and abusive conduct that violates consumer protection principles. I am requesting CFPB intervention to ensure accountability and recovery of my losses. 

Let me know if you need any additional information.

Company response to consumer: Closed with monetary relief