Business 22 June 2018

Erik Gibbs

SEC weeds through 200 pages of complaints against Coinbase

Coinbase, the largest cryptocurrency exchange in the United States, has received the ire of a number of its investors. According to a report, the U.S. Securities and Exchange Commission (SEC) has received 200 pages of complaints against the exchange, with users alleging theft of funds and a lack of response on the part of the company.

According to Mashable, a growing list of Coinbase users have reported issues with the platform. The news outlet was able to get copies of 164 pages of user complaints, showing repeated reports of theft, missing funds and fraud.

One complaint reads, “I have sent 17,023.00 from my Coinbase account to another Coinbase account on 12.21.2017. 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. I have lost 5000$ [sic] of my investment because they never tried to solve my issue…”

Another user said in his letter to the SEC, “Coinbase suddenly and erroneously froze…my account [containing more than $100,000 of bitcoin] without explanation more than one month ago…Coinbase does not get back to you…Coinbase effectively cuts off consumers from their rightful property and forces risk of loss and lost profits.”

In response, Coinbase sent an email to Business Insider, indicating that it is proactively addressing customer complaints and the multitude of issues. The company said in May that it had hired more support team personnel, worked diligently to reduce response times and has addressed a mountain of complaints. It also said that the company is now responding to its users within 10 hours of receiving contact.

Coinbase has estimated its value to be around $1.6 billion. It touts itself as an honest company in an industry that is often associated with cybercrime and the dark web.

This isn’t the first time that the exchange has come under fire. It is facing lawsuits over alleged insider trading, and an investigation against the company was launched by former New York Attorney General Eric Schneiderman. This past February, Coinbase was also accused of making repeated unauthorized charges against user bank accounts. Coinbase admitted the assertions, but blamed them on the credit card company Visa. Some pointed out, however, that it seemed odd that the overcharges were only popping up through Coinbase, and not through any other companies.

Note: Tokens on the Bitcoin Core (SegWit) chain are referenced as BTC coins; tokens on the Bitcoin Cash ABC chain are referenced as BCH, BCH-ABC or BAB coins.

Bitcoin Satoshi Vision (BSV) is today the only Bitcoin project that follows the original Satoshi Nakamoto whitepaper, and that follows the original Satoshi protocol and design. BSV is the only public blockchain that maintains the original vision for Bitcoin and will massively scale to become the world’s new money and enterprise blockchain.

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