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International Business Times
International Business Times
Business
Marvie Basilan

'Not A Good Sign': Crypto Users Demand Answers Over Purported Coinbase Transaction Limits

Coinbase Crypto Bitcoin Adam Cochran Sean Clarke KYC NFL
Coinbase has been advocating for a revamp of the traditional financial system. (Credit: Coinbase Twitter)

KEY POINTS

  • One user claims to have been restricted for over a year with little help from management
  • Ex-NFL player Carlton Mitchell said he was restricted twice throughout September
  • Coinbase is now accused of not having the reserves to back its crypto offerings

Cryptocurrency users on X are fired up after some Coinbase customers revealed screenshots of notices from the crypto giant that stated some of their transactions have been restricted.

Coinbase Reportedly Blocks Some Transactions

In one post, a user tagged G'Day Bitcoin host Sean Clarke, asking the BTC enthusiast to "spread the word" about how Coinbase restricted the user's "crypto sends" without warning prior to a purchase. The user said he will seek advice from authorities regarding the matter.

"Crypto Sends Restricted. As a precautionary measure, to protect you against potential loss, we have limited your ability to send crypto until October 28, 2024. Please try again after this date," the notice supposedly from Coinbase reads.

Former NFL player Carlton Mitchell revealed that his transactions have also been restricted twice in the month. The first instance was reportedly on making purchases, and in the second instance, he was unable to send coins. He also provided screenshots of the transaction limit notices.

Another user claimed to have been restricted for more than a year "with the same issues." He has reportedly attempted to reach out to Coinbase management but they have allegedly been telling him "to check back after a month."

Several other users shared similar experiences with one of the world's largest crypto platforms, including one that accused Coinbase of stealing customer funds "by blocking your crypto, claiming it's suspicious despite three successful KYC (know your customer) and AML (anti-money laundering) verifications."

There have also been allegations that Coinbase doesn't have the digital assets they're offering.

Warnings and Flashbacks on Coinbase Downtimes

Clarke has since re-posted about the matter, warning users not to use the platform. "This is not a good sign," the Bitcoin advocate said. "First they go down as it pumps then they prevent you taking self custody of you[r] Bitcoin," he wrote.

One user backed Clarke, citing four Coinbase shutdowns "when Bitcoin pumped this year in the ATH (all-time-high) range."

Multiple other users cited the same issue: that Coinbase allegedly goes down whenever Bitcoin is pumping or goes higher.

The Issue of 'Legitimate' Accounts

Prominent analyst Adam Cochran has weighed in on the matter. He explained that Coinbase issues restriction notices based on two things: first, a potential account compromise, and second, when there is a potential KYC/AML violation. He added that "durations increase with severity risk."

Cochran also said "legit accounts" won't have issues resolving the limited transactions with Coinbase, noting that if some users are struggling to get the restrictions lifted, "it's very likely you've repeatedly interacted with a bad address on-chain."

Coinbase did not immediately respond to International Business Times' request for comment on the matter.

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