Crypto Investigator Reveals Disturbing Insights On Coinbase’s Controversial Account Blocks

In recent months, an increasing number of users have expressed on the social media platform (formerly Twitter) their frustration with regard to unexpected account restrictions and blocks imposed by Coinbase Cryptocurrency Exchang.

This wave of complaints has sparked major concerns about Coinbase risk management practices and its effectiveness in preventing users from falling into the victim to fraud in social engineering, which can cost customers more than $ 300 million annually.

65 million dollars stolen amid user complaints and account restrictions

Zachxbt, encrypted investigator, has Attributed These account problems to Coinbase’s “aggressive risk models”, which seem to give priority to safety measures at the expense of access to the user.

Zachxbt analyzed Coinbase withdrawals, and revealed 65 million dollars stolen from users between December 2024 and January 2025 alone. It is important to note that this number is likely to be a small part of the actual losses.

One of the specially disturbing cases included an individual who lost about $ 850,000 for an advanced fraud. The deception has used a referred phone number and use personal information from the databases at risk to establish confidence with the victim.

As a representative of Coinbase, the deception claimed that the victim’s account has witnessed unauthorized entry attempts – a tactic that explicitly warns users of users, indicating that they will never start phone calls.

Next, the deception was sent a fake e -mail that seemed to come from Coinbase, with a fake case definition to increase the victim’s confidence.

Then they issued instructions to the victim to transfer money to the Coinbase and a white wife, a specific title, while making sure that “support” was checking the security of their account.

Coinbase criticized for insufficient response

According to what was reported, the fraudsters developed an identical reproduction from Coinbase, allowing them to send deceptive emails that seem legitimate. Several telegraph channels have appeared, as these fraudsters announce their harmful tools.

The responsibility of these security failures falls significantly in the Coinbase leadership, which has been criticized for not addressing the root causes of these issues sufficiently.

While it is tempting to blame only on the stock exchange, the reality is more accurate, as Zachxbt suggests. Many victims have reported that insufficient support from Coinbase, and often stumble with customer service agents who cannot provide meaningful assistance.

Moreover, the exchange team is said to be “difficult to reach” outside the American working hours, which is not understood in the 24/7 market, which increases the complexity of the scene for its users.

In light of these challenges, the suggestions range from creating account options that enhance safety for advanced users to improve awareness and educational resources for those less knowledgeable of the nuances of online security.

Moreover, following the legal procedures against both fraudsters and tools that allow these crimes can serve as a deterrent and show an obligation to protect the user.

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