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Breaking News / Cryptocoins / Exchanges

Coinbase Fraud Accusations Could Set Coinbase Domination Plans Back

Coinbase want to become the worlds biggest and best cryptocurrency exchange. This is hardly surprising as I am sure every cryptocurrency exchange would want to achieve that accolade. Either way, we are seeing reports today that discuss how Coinbase has had a number of complaints filed against it in the United States, complaints that now looking to be engaging the involvement of the US Securities and Exchange Commission (SEC).

This stems from an investigation carried out by Mashable, according to whom:

“A recurring theme in the SEC complaint files Mashable obtained is the seeming disappearance of a would-be trader’s money, and what is portrayed as an aggressive nonchalance on the part of Coinbase in response to the loss. Notably, the SEC redacted the complaints to remove personally identifiable information. This, while an understandable privacy measure, makes it practically impossible to reach out to the complainants for follow up. As such, we’ll mostly let their words speak for themselves.”

Some of the complains include the following:

“Coinbase has been in possession of my funds ($21,000) since August 30th, 2017, they have effectively stolen my money at this point. They have no way to reach them by phone, and they are ignoring my repeated attempts to resolve this matter.”

Also:

“I have sent 17,023.00 from my Coinbase account to another Coinbase account on 12.21.2017. The other Coinbase account never received the funds as of 1/16/2018. I have contacted Coinbase over 7 times and all they say is that they have so many issues, they will get back to me and it is been a month. I believe the company is holding my funds to make money on top of my investment.”

It’s something people are pretty passionate about, for obvious reasons:

“I am happy to take this as far as possible, socially, politically, and economically, if I do not receive what I am owed, or continue to receive no response from the company, both of which I’m sure are inevitable, If I can help to dismantle these frauds and protect any other people in America or abroad, I am more than happy to do so — just reach out.”

You can see the full report for yourself, here-
https://mashable.com/2018/06/20/sec-coinbase-complaints-fraud/?europe=true&utm_campaign=Mash-BD-Synd-Flipboard-All-Full&utm_cid=Mash-BD-Synd-Flipboard-All-Full#aHyg6TgiFiq5

These are very tough allegations that could in turn have devastating consequences on Coinbase. Moreover, if they have actually been scamming and stealing from customers, they could be about to find themselves in a serious spot of other. At the very least, this news should instigate an in-depth investigation into what has been going on here. This could lead to two things- we may see that the ‘complainees’ are simply disgruntled and are trying to cause trouble, or, on the flip side we could see something deeper happening here, something that may very well stick Coinbase in the middle of a larger investigation.

Whilst it doesn’t seem very serious yet, this could very well damage the reputation of Coinbase for a very long time, should the SEC find that these allegations are of course true.

As it stands, we cant be sure of the full scale of this yet, as ever though, we will strive to keep an eye on this news and keep you informed as the story develops.


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Thomas has led a number of teams, giving training and guidance in marketing and PR. He has worked at high profile firms, with offices across the country. He has experience in copywriting and editing, for a variety of different sectors.