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Crypto Potato 2024-12-10 04:31:35

Coinbase Addresses Misinformation Amid Allegations of Account Restrictions

Coinbase Addresses Misinformation Amid Allegations of Account Restrictions

Coinbase has responded to allegations of unjust account restrictions following weeks of heated discourse on X. The exchange’s support account, @CoinbaseSupport, posted a detailed thread addressing the situation. Support Clears Out the FUD The controversy began after several users on X shared screenshots showing notices from Coinbase indicating transaction restrictions. One user tagged Sean Clarke, host of the G’Day Bitcoin podcast, alleging that their “crypto sends” were restricted without warning, prompting them to consider seeking legal advice. Clarke responded by describing the circumstances as “crazy” and urging others not to use the platform. He noted that the situation is a troubling indication of its current state. Former NFL player Carlton Mitchell also came forward, sharing that his Coinbase account had faced restrictions twice within a month. The issues reportedly included blocked purchases and limitations on sending cryptocurrency. Another customer reported being unable to resolve their account limitations for over a year, stating that Coinbase’s support team repeatedly advised them to “check back after a month.” Amid the uproar, the Coinbase support team sought to clarify the situation. They attributed the increased restricted accounts to a recent surge in new and reactivated users, particularly following recent elections. According to the team, this has coincided with a two-to-threefold rise in fraudulent attempts. Coinbase assured users its fraud prevention systems are functioning as intended, reportedly saving customers tens of millions of dollars in November alone. However, these systems have also contributed to temporary restrictions and increased customer service wait times. The support team stated, “Please bear with us and don’t believe everything you see on Twitter. ” They also reassured users experiencing restrictions that the platform is actively working to resolve their issues. Rising Security Threats and Criticism The reports of account restrictions coincide with rising security threats targeting Coinbase users. On Saturday night, pseudonymous security researcher @pcaversaccio shared that several accounts had been drained by attackers impersonating Coinbase support. The researcher also criticized the platform’s apparent stance on the use of VPNs, calling it a “clown show.” This was after Coinbase product director Scott Shapiro warned people against using VPNs when accessing the platform. In a December 3 post on X, he explained that attackers frequently use them, which can raise red flags within the platform’s risk models. Another individual criticized the advice, questioning whether Coinbase was seriously asking people to compromise their security measures, calling it misguided and urging the company to reconsider its stance. However, Shapiro clarified that using a VPN or ad blocker alone would not result in an account being flagged. He explained that these tools, combined with other suspicious activities, such as logging in from an unknown device in a new country and attempting to send large amounts of cryptocurrency to an unfamiliar address, can trigger additional security reviews. The post Coinbase Addresses Misinformation Amid Allegations of Account Restrictions appeared first on CryptoPotato .

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