Coinbase responded to recent concerns regarding account restrictions. They attributed this issue to an uptick in fraud activities after the US presidential elections.
The exchange, which took place on the social media platform X – formerly Twitter – was dismissive of claims that account restrictions were widespread. It dismissed them as FUD and misinformation.
It was noted that the firm had seen a rise in its user base, and a threefold growth in fraud attempts. A pattern that is often seen in periods of increased activity. The exchange stressed that it’s fraud-prevention systems prevented the potential loss of millions to customers in November.
Nevertheless, this has led to more restrictive accounts and longer waits for support. The article explained that:
“This is causing a minor increase in restricted accounts and elevated CX wait times. Please bear with us and don’t believe everything you see on Twitter.”
Coinbase’s explanation is rejected by the community
Despite Coinbase’s reassurances, its approach has drawn criticism from users and industry voices.
Austin Federa, a former Solana Foundation executive, challenged the platform’s claims, stating that the issue goes beyond misinformation. He highlighted personal experiences, including his mother’s account being restricted without clear justification despite meeting all compliance requirements.
Federa expressed his frustration at the Coinbase customer support for not being clear and extending the restrictions period without any explanation. He said:
“I know a few folks at Coinbase – I ping them asking to help, they intervene… she tries to transfer assets out and boom, flagged again, this time for twice as long.”
Other users echoed similar grievances, sharing stories of restricted accounts despite adhering to the platform’s policies. A community note attached to Coinbase’s post also supported claims that the restrictions are real, adding weight to the criticisms.
This backlash follows another recent controversy in which Coinbase was criticized for restricting the accounts of users who accessed the platform via Virtual Private Networks (VPNs).
Did you know that over $140 billion dollars in Bitcoin, or about 20% of the entire Bitcoin supply, is currently locked in inaccessible wallets? Or maybe you have lost access to your Bitcoin wallet? Don’t let those funds remain out of reach! AI Seed Phrase Finder is here to help you regain access effortlessly. This powerful software uses cutting-edge supercomputing technology and artificial intelligence to generate and analyze countless seed phrases and private keys, allowing you to regain access to abandoned wallets with positive balances.
