Coinbase Users Left High And Dry After Hackers Drain Entire Accounts
Image via ID 183384995 © Dušan Zidar | Dreamstime.com
Coinbase, the United States’ largest cryptocurrency exchange, has come under fire for leaving users to fend for themselves after hackers drained their funds.
The Vidovics, a family in Safety Harbor, Florida, had turned to Coinbase as a way to cash in on the cryptocurrency boom. However, in late April this year, they received a series of security alerts and password change notifications for their account. Horrifyingly, before they could even reset their login credentials, hackers had drained them of the US$168,000 in holdings.
Following the incident, the Vidovics tried to get in touch with Coinbase’s customer service representatives, but couldn’t get anyone on the phone. According to CNBC, interviews with Coinbase users around the country and reviews of thousands of complaints have revealed that the Vidovics weren’t the only ones who experienced the ordeal.
Many said their holdings had suddenly vanished from their account, with them unable to get in touch with the exchange’s customer service. They were left with no money, and no help.
“I looked into Coinbase, and it seemed like it was one that everybody used and trusted,” said Tanja Vidovic.
She had good reason to do so, seeing as the company went public in April with a market cap of US$65 billion. According to CNBC, it boasts 68 million users, with more than 2,100 full-time employees in its offices. Why then, could none of the users with hacked accounts get in touch with representatives?
Since 2016, users have filed more than 11,000 complaints with the Federal Trade Commission and Consumer Financial Protection Bureau (CFPB) against Coinbase.
Ben, a user in Virginia, had the same thing happen to him when US$35,000 disappeared from his Coinbase account in March. He sent an email to the company, asking for help to retrieve the money. However, in response, Coinbase said Ben’s computer had been hacked, and there was nothing the company could do to help him.
“I really am baffled. It just seems to me that Coinbase did absolutely zero research and just said, ‘Hey, yeah, sorry,’” he said.
Ben then filed a complaint with the CFPB, who referred him to a response from Coinbase’s Regulatory Response Team. In the email, he was notified that transactions on blockchain couldn’t be reversed, and the exchange’s policy didn’t cover theft from individual accounts.
“There is no credible or supportable evidence that the compromise of your login credentials was the fault of Coinbase. As a result, Coinbase is unable to reimburse you for your alleged losses,” the email read.
Eventually, after more complaints, Ben received US$200 credit from the company.
Recently, following a review of the complaints made against Coinbase, the Better Business Bureau determined it had a “pattern of complaints from customers who state they are locked out of their accounts, even after providing required information or updates.”
The bureau sent a letter to Coinbase to address the complaints, though it has “not heard a response from this business, about the situation [or] pattern of complaints for the last three years.”
Although some users were fortunate enough to get a response from the company, most of the victims took to social media to seek help. With so many years of complaints building up, it’s strange that a public-listed firm hasn’t cleared the air with its users just yet.
[via CNBC, cover image via ID 183384995 © Dušan Zidar | Dreamstime.com]
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