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 alternate’s assist account, @CoinbaseSupport, posted an in depth thread addressing the scenario.

Help Clears Out the FUD

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

One person tagged Sean Clarke, host of the G’Day Bitcoin podcast, alleging that their “crypto sends” have been restricted with out warning, prompting them to think about searching for authorized recommendation. Clarke responded by describing the circumstances as “loopy” and urging others to not use the platform. He famous that the scenario 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 staff repeatedly suggested them to “test again after a month.”

Amid the uproar, the Coinbase assist staff sought to clarify the scenario. They attributed the elevated restricted accounts to a current surge in new and reactivated customers, significantly following current elections. Based on the staff, this has coincided with a two-to-threefold rise in fraudulent makes an attempt.

Coinbase assured customers its fraud prevention methods are functioning as supposed, reportedly saving prospects tens of thousands and thousands of {dollars} in November alone. Nonetheless, these methods have additionally contributed to non permanent restrictions and elevated customer support wait instances.

The assist staff said, “Please bear with us and don’t consider every thing you see on Twitter. ” In addition 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 concentrating on Coinbase customers. On Saturday night time, 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 submit on X, he explained that attackers often use them, which may increase pink flags throughout the platform’s threat fashions.

One other particular person criticized the recommendation, questioning whether or not Coinbase was significantly 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, akin to logging in from an unknown machine in a brand new nation and trying to ship massive quantities of cryptocurrency to an unfamiliar handle, can set off extra safety opinions.