Coinbase Addresses Misinformation Amid Allegations of Account Restrictions

Coinbase has responded to allegations of unjust account restrictions following weeks of heated discourse on X.

The trade’s assist account, @CoinbaseSupport, posted an in depth thread addressing the state of affairs.

Assist Clears Out the FUD

The controversy started after a number of customers on X shared screenshots exhibiting notices from Coinbase indicating transaction restrictions.

One consumer tagged Sean Clarke, host of the G’Day Bitcoin podcast, alleging that their “crypto sends” have been restricted with out warning, prompting them to contemplate in search of authorized recommendation. Clarke responded by describing the circumstances as “loopy” and urging others to not use the platform. He famous that the state of affairs is a troubling indication of its present state.

Former NFL participant Carlton Mitchell additionally got here ahead, sharing that his Coinbase account had confronted restrictions twice inside a month. The problems reportedly included blocked purchases and limitations on sending cryptocurrency.

One other buyer reported being unable to resolve their account limitations for over a yr, stating that Coinbase’s assist crew repeatedly suggested them to “test again after a month.”

Amid the uproar, the Coinbase assist crew sought to clarify the state of affairs. They attributed the elevated restricted accounts to a current surge in new and reactivated customers, notably following current elections. In response to the crew, this has coincided with a two-to-threefold rise in fraudulent makes an attempt.

Coinbase assured customers its fraud prevention techniques are functioning as meant, reportedly saving clients tens of hundreds of thousands of {dollars} in November alone. Nonetheless, these techniques have additionally contributed to momentary restrictions and elevated customer support wait instances.

The assist crew said, “Please bear with us and don’t consider all the pieces you see on Twitter. ” Additionally they reassured customers experiencing restrictions that the platform is actively working to resolve their points.

Rising Safety Threats and Criticism

The reviews of account restrictions coincide with rising security threats focusing on Coinbase customers. On Saturday evening, pseudonymous safety researcher @pcaversaccio shared that a number of accounts had been drained by attackers impersonating Coinbase assist.

The researcher additionally criticized the platform’s obvious stance on the usage of VPNs, calling it a “clown present.” This was after Coinbase product director Scott Shapiro warned individuals in opposition to utilizing VPNs when accessing the platform.

In a December 3 publish on X, he explained that attackers steadily use them, which might increase purple flags inside the platform’s threat fashions.

One other particular person criticized the recommendation, questioning whether or not Coinbase was critically asking individuals to compromise their safety measures, calling it misguided and urging the corporate to rethink its stance.

Nonetheless, Shapiro clarified that utilizing a VPN or advert blocker alone wouldn’t lead to an account being flagged.

He defined that these instruments, mixed with different suspicious actions, comparable to logging in from an unknown gadget in a brand new nation and making an attempt to ship giant quantities of cryptocurrency to an unfamiliar deal with, can set off extra safety critiques.