Rising Discontent Among X Users Over Coinbase Account Restrictions
In recent times, an increasing number of users on the social media platform X (formerly known as Twitter) have expressed dissatisfaction with unexpected account limitations and blocks imposed by Coinbase, a US-based cryptocurrency exchange. This surge of grievances has spotlighted concerns regarding Coinbase’s risk management strategies and its efficacy in safeguarding users from social engineering scams, which reportedly cost customers over $300 million annually.
Massive Losses Amidst Coinbase Account Restrictions
Renowned crypto investigator ZachXBT has linked these account challenges to what he describes as Coinbase’s “aggressive risk models.” These models seem to prioritize stringent security protocols, often at the expense of user accessibility. Through a thorough investigation into Coinbase withdrawals, ZachXBT discovered that a staggering $65 million was illicitly taken from users between December 2024 and January 2025. This figure likely represents only a portion of the actual losses incurred.
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One particularly alarming incident involved a victim who lost about $850,000 due to an intricate scam. The scammer used a spoofed phone number paired with personal data from compromised databases to convince the victim of their legitimacy. Masquerading as a Coinbase representative, the scammer falsely alerted the victim of unauthorized login attempts on their account—a tactic against which Coinbase specifically cautions users, emphasizing that they never initiate phone calls.
Subsequently, the scammer dispatched a fraudulent email mimicking Coinbase, complete with a fabricated Case ID, to further deceive the victim. They instructed the victim to transfer funds to a Coinbase Wallet and authorize a particular address, all under the guise of “support” verifying the account’s security.
Criticism Over Coinbase’s Response to Security Breaches
Scammers have developed nearly identical clones of the official Coinbase site, enabling them to send phishing emails that appear authentic. Numerous Telegram channels have surfaced, where these scammers promote their illicit tools. The onus of these security breaches largely falls on Coinbase’s leadership, which has faced criticism for failing to address the core issues behind these security lapses effectively.
Despite the apparent inclination to hold the exchange accountable, the situation is more complex, as ZachXBT points out. Many affected users have reported unsatisfactory support experiences from Coinbase, often finding themselves stuck with customer service representatives unable to offer substantial assistance. Furthermore, the exchange’s support team is reportedly “often inaccessible” outside of US business hours, posing a considerable challenge in a market that operates around the clock.
Considering these difficulties, suggestions have emerged, ranging from developing enhanced security options for advanced users to expanding outreach and educational resources for those less familiar with online security intricacies. Additionally, taking legal action against both the perpetrators and the tools facilitating these crimes could act as a deterrent and demonstrate a commitment to user safety.
