Coinbase Racks Up SEC, California Business Oversight Complaints Alleging Lost Funds, Nonchalant Customer Service – Report

Investing, News, Regulation | June 20, 2018 By:

Coinbase has a history of not responding to customer complaints in a timely manner and often “disappeared” funds from accounts, according to a new report by website Mashable.

In a scathing article based on complaints filed to the SEC and the California Department of Business Oversight and obtained by Mashable through the Freedom of Information Act, the top US exchange appears overwhelmed by its success and unable to muster a timely response when things go south.

Mashable notes that a recurring theme in the SEC complaint files is the seeming disappearance of a would-be trader’s money, and what is portrayed in those complaints as “an aggressive nonchalance on the part of Coinbase in response to the loss.”

Coinbase has acknowledged earlier this year that its customer service needed improvement, and ramped up hiring in that sector, finally publishing a phone number where complaints could be registered to a live human. The company is valued at well over a billion dollars and has been aggressively expanding, making the Mashable report a definite wake-up call for an exchange that has been on the cutting edge of the cryptocurrency revolution.

The SEC and California complaints were redacted, making it hard for Mashable to reach out to the complaintants to find out whether their problems were resolved.  But the statements in the files are chilling.

One example:  “I have sent 17,023.00 from my Coinbase account to another Coinbase account on 12.21.2017,” it reads. “The other Coinbase account never received the funds as of 1/16/2018. I have contacted Coinbase over 7 times and all they say is that they have so many issues, they will get back to me and it is been a month.”

Problems.

IMAGE: SEC

Not good.

IMAGE: SEC

“Coinbase has been in possession of my funds ($21,000) since August 30th, 2017,” reads another complaint from September of last year. “They have effectively stolen my money at this point. They have no way to reach them by phone, and they are ignoring my repeated attempts to resolve this matter.”

Another individual claims that Coinbase has “stolen” a “majority of [their] life savings,” and despite dozens of attempts to get in touch with someone at the exchange, they have only received form emails in response.

Gone.

IMAGE: SEC

Block Tribune has reached out to Coinbase for comment on the article’s allegations. We will publish their response when received.