Coinbase is the most well-known fiat on-off ramp app for major cryptocurrencies and is looking to go public with an IPO in the next few weeks. However, is all as it should be for such a giant of the crypto space? Some of Coinbase’s customers certainly don’t think so.
According to an article published by the New York Times, Coinbase customers are suffering hacks and worse still, the $100 billion valued company has done little to help.
The article highlights some worrying incidents. One entailed a customer who received a text from an unknown number on his phone. Concerned that his phone was being hacked, he tried to login and check his Coinbase account that contained $100,000 in cryptocurrencies.
He was unable to do so and contacted Coinbase for help. After investigation, the company told him that an attacker had reset his password and stolen all the funds on his account. The customer told of his shock that Coinbase security was unable to stop the theft.
The customer, who was a lawyer, and also a former employee of Coinbase, began to plead with his former colleagues to investigate the case and urged Coinbase to reimburse the funds. He reported that he received minimal assistance from Coinbase and so he decided to sue the company.
According to the article this is only one of many stories of customers who have either lost their funds or who have been locked out of their accounts for no good reason.
A forum on Reddit has been deluged with Coinbase customers who are seeking help to get their accounts unlocked. One Reddit user left many comments, complaining that he had been locked out of his Coinbase account for more than a year. One such comment read:
“Please reply my emails and give me solutions. I can’t lose my money!”
As Coinbase prepares to go public it would appear to be an absolute priority that the company gets its customer service house in order. As a flagship for cryptocurrencies Coinbase will need to be seen to be doing its utmost to defend and assist the customers who are entrusting it with their assets.
The Vice-President of customer experience for Coinbase said in a statement that his company was managing a cryptocurrency economy that operated 24/7 in addition to a huge increase in demand. He said that it had employed a further 2000 customer services support workers over the last few months and that waiting times had reduced.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.