The SEC has received nearly 200 pages of complaints about Coinbase, the $1.6 billion cryptocurrency trading platform
- Coinbase users allege that the company has stolen funds and not responded to their complaints, according to complaints filed with the SEC.
- Coinbase says that it's addressing the complaints, and that it has hired more support staff to respond to user inquiries.
Coinbase has long positioned itself as a trusted trading platform among cryptocurrency enthusiasts, but a series of complaints filed with the SEC reveals that the cryptocurrency exchange is not without its troubles.
According to 164 pages of complaints obtained by Mashable, multiple Coinbase users say that they've had issues with the platform. Among the most egregious allegations are the claims that Coinbase "stole" cryptocurrency holdings from its users, repeatedly ignored customer complaints regarding missing funds, and systematically defrauded its customers.
Here's are a few of the complaints filed with the SEC against the company:
- "I have lost...5000$ [sic] of my investment because they never tried to solve my issue."
- "Coinbase has not credited [$21,000 wired to my account], and has not responded to my multiple attempts to contact them to get this issue resolved. I now believe that they are acting criminally."
- "Coinbase suddenly and erroneously froze...my account [containing more than $100,000 of bitcoin] without explanation more than one month ago...Coinbase does not get back to you...Coinbase effectively cuts off consumers from their rightful property and forces risk of loss and lost profits."
- "Coinbase accepts money from users under the pretense of being able to return gains, but systematically disallows that ability once tested...and then cuts [off] all contact with its customers."
That Coinbase is experiencing issues handling its users' funds isn't all that surprising: Cryptocurrency trading platforms are notoriously difficult to scale, and Coinbase has acknowledged that it's been slow to respond to customer inquiries in the past.
In an email, a representative for Coinbase told Business Insider that the company was proactively tackling any issues with customer complaints. In the past few months, Coinbase has hired more people for its support team, decreased its average time to respond to inquiries, and addressed a backlog of complaints, the representative said. Now, the company estimates that it responds to users in less than ten hours.
Read the full story over at Mashable here.