Bitcoin Trading Webstek Coinbase Faces SEC Complaints Overheen Missing Crypto
California-headquartered crypto trading toneel Coinbase—used to buy and sell imaginario currencies such spil Bitcoin, Litecoin and Ethereum—has bot named te at least 115 complaints sent to the U.S. Securities and Exchange Commission and the California Department of Business Oversight.
Ter the filings, obtained by Mashable, users have accused the webstek of withholding access to accounts, misplacing enormous amounts of money and of having a non-existent customer service. One customer wrote te September last year that Coinbase had “effectively stolen” $21,000 after it allegedly went missing te a canap transfer. “They are overlooking my repeated attempts to resolve this,” the complaint read.
Another customer, who reported issues with an account holding the omschrijving of $100,000, said Coinbase had locked them out due to a security software error and had bot unresponsive for weeks.
“I believe Coinbase has engaged ter fraud by knowingly marketing a service it knows it cannot actually provide,” the filing from November last year read, adding: “Coinbase knows it does not have the infrastructure to timely and adequately meet customer needs.” At the time, bitcoin and other aparente currencies were rocketing ter value, leading to an unprecedented rente from impatient fresh investors.
A picture taken on February 6 shows a visual representation of the digital crypto-currency Bitcoin, at the “Bitcoin Switch” shop ter the Israeli city of Tel Aviv. Bitcoin fell to its lowest price te two months on Sunday. JACK GUEZ/AFP/Getty Photos
A third frustrated user wrote: “I wired $1,000 from my Canap of America account to my Coinbase account. This wasgoed supposed to be a one-day transaction. The money did not arrive te my account.”
Spil noted by Mashable, Coinbase has bot valued spil being worth approximately $1.6 billion. It brands itself spil the trusted face of an industry typically linked to cybercrime and dark web markets.
But complaints have long dogged the toneel. One engineer admitted on Reddit last December that the webstek wasgoed fighting te the wake of a “tremendous surge of public rente te cryptocurrencies.” Te January this year, customers threatened to take reglamentario act overheen the mounting support issues.
Tina Bhatnagar, VP of operations and technology at Coinbase, wrote ter a May blog postbode that the verhoging wasgoed “laser focused” on improving the service practice and pressing operational issues.
“In , the cryptocurrency space experienced a profound uptick ter mainstream awareness and growth,” she wrote. “As part of that consumer request for our services enhanced by 40x and wij experienced transaction volumes ter November and December of that year that grew by 295%.” Bhatnagar said Coinbase had decreased the promedio time to very first response to under Ten hours.
Online, the webstek has made an attempt to increase transparency ter latest months.
But on Reddit this week, several posts indicate that problems with Coinbase accounts persist. Te December , the co-founder of the trading webstek said the company wasgoed investigating possible insider trading. More recently, Coinbase wasgoed named te an investigation launched by former Fresh York Attorney Militar A.G. Schneiderman. Coinbase did not react to a request for comment.
A gold plated souvenir Bitcoin coin is arranged for a photograph on a clever phone displaying current value of a single bitcoin, and options to buy or sell, on an app for the digital asset broker, Coinbase, te London on November 20, . JUSTIN TALLIS/AFP/Getty Pictures