Coinbase Finally Admits to Years-Long Problem

Brian Armstrong, CEO of Coinbase, finally publicly acknowledges a “major problem” that has been plaguing his platform for years. The leading American exchange announces an 82% reduction in abusive freezes. But is this improvement enough to restore confidence shaken by recent data breaches?

Coinbase wants to turn the page on frozen accounts

On June 6, Brian Armstrong, CEO of Coinbase, posted a direct message on X:

“Account freezing has been a major issue at Coinbase for longer than is acceptable. … The issue has been reduced by 82% so far, with more improvements coming.” A statement that sounds like a confession.

For too long, users have been locked out of their funds without clear explanation. Some for several months. One user even reports being blocked for over two years.

The problem is not new. For several years, forums and social networks have been full of testimonies from frustrated, even desperate customers.

Coinbase’s customer support, often criticized for its lack of responsiveness, has not improved the situation. In the crypto world, where trust and speed are vital, this type of dysfunction seriously damages a platform’s reputation.

To address this crisis of trust, Coinbase has heavily invested in artificial intelligence. Dor Levi, the new product manager since April, has supervised the improvement of machine learning models designed to detect real suspicious behavior without penalizing regular customers. These efforts seem to be starting to bear fruit.

A long-overdue reform in an explosive climate

This announcement comes in a rather tense context for the platform. Coinbase was recently shaken by a massive cyberattack, revealed in mid-May, involving bribed customer support agents who transmitted personal data of more than 70,000 customers.

As it approaches its entry into the S&P 500 – a first for a crypto company – the matter has left a stain.

Coinbase is now at a strategic crossroads: on one side, growing legitimacy in traditional markets, reinforced by its acquisition of Deribit and a potential $9 billion passive purchase injection. On the other, major internal challenges regarding cybersecurity, customer support, and crisis management.

It is therefore logical that the company seeks to restore trust at the root: its users. Because without them, no volume, no reputation, and most importantly… no future.

In short, Coinbase is trying to straighten the course after years of neglect on a fundamental problem affecting the user experience. Although the technological improvements seem promising, they may come too late for some already lost customers.

In a sector where trust is the foundation of the customer relationship, the exchange will have to prove that this reform is not just a simple communication exercise. Can Coinbase still regain users’ trust after a series of scandals?