The documents obtained through the Freedom of Information Act detail pleas of allegations regarding fraud against the prominent San Francisco-based cryptocurrency startup.
The customer complaints cover myriad problems and concerns, all stemming from Coinbase’s initial disregard of the reported claims. The allegations of fraud have surmounted through the recurring disappearance of funds, to which Coinbase would respond to nonchalantly, if at all. Many users reportedly reached out to the company over seven times to no avail, leading many to believe that Coinbase is withholding customer funds for untold purposes.
One customer stated, “I am prevented from selling, buying, transferring or accessing my property and also cut off from all transaction history and other information. After repeated prompting via emails and phone calls, Coinbase advised me that I am locked out of my account as a result of a security software error on their end and that they would look into it. That was a month ago.”
Various corroborating complaints feature individuals who claim the company has stolen their ‘life savings’, displaying justifiable fear as the company remained silent in the midst of the frenzy.
A spokesperson from Coinbase claims that the rising popularity of cryptocurrency resulted in a strain on the company’s customer service infrastructure, which worked to inhibit the team from performing diligently. Customer demand increased by forty percent beginning 2017, with transaction volumes of November and December growing by 295 percent.
Tina Bhatnagar, who is currently Coinbase’s general manager and vice president, released a statement to CNBC last month detailing plans to pursue the unlocking of $10 billion in institutional investor money that the company presumed sat on the sidelines.
The complaints were recently addressed by Coinbase on the company’s blog, which attempts to convey an extreme sense of urgency to fix the problems and plans to roll out a 90-day-plan to scale support.