Addressing Concerns About Account Restrictions
Coinbase recently addressed concerns about account restrictions, attributing the issue to a spike in fraudulent activities following the US presidential election.
Explanation by Coinbase
In a post on social media platform X (formerly Twitter) on Dec. 8, Coinbase dismissed claims of widespread account limitations as misinformation and FUD. The exchange explained that the increase in user activity led to a threefold rise in fraudulent attempts, which is a common pattern during periods of heightened activity. Despite this, Coinbase’s fraud prevention systems successfully prevented millions in potential customer losses throughout November.
However, these measures have resulted in more restricted accounts and longer wait times for support resolutions. Coinbase acknowledged the inconvenience and urged users to be patient during this time.
Community Response
Despite Coinbase’s explanation, the community has rejected it, citing personal experiences of account restrictions without clear justification. Former Solana Foundation executive Austin Federa challenged Coinbase’s claims and expressed frustration over the lack of clarity from Coinbase support.
Other users also shared similar grievances, highlighting instances of restricted accounts despite following the platform’s policies. This backlash comes in the wake of a previous controversy where Coinbase faced criticism for restricting accounts of users who accessed the platform via Virtual Private Networks (VPNs).
User Experiences
Austin Federa shared his frustration with Coinbase support extending the restriction period without explanation, despite his efforts to resolve the issue for his mother’s account. This lack of transparency has further fueled criticism against Coinbase’s handling of account restrictions.
