Coinbase Slashes Account Freezes by 82% Amid User Backlash
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Coinbase CEO Brian Armstrong announced that the cryptocurrency exchange has significantly reduced unnecessary user account freezes —by 82%—after acknowledging that the issue had persisted far too long. In a June 6 post on X, Armstrong admitted that addressing the problem had become a “top priority” and invited affected users to contact Coinbase Support directly. “For longer than is acceptable, account freezes have been a major issue,” Armstrong said . “We’ve now reduced this by 82%, with more improvements coming.” AI Drives Drop in Coinbase Account Freezes The substantial progress comes after Coinbase brought in Dor Levi, a product team member, nine weeks ago with a dedicated mission to fix the problem. Levi revealed that the team made “significant investments” in improving the company’s machine learning models and infrastructure to enhance accuracy and reduce false triggers that led to account restrictions. “We’ve improved the precision and recall of our models, and as a result, there are fewer freezes,” Levi explained. While Coinbase will continue to freeze accounts when legally required—such as due to court orders or sanctions—Levi acknowledged that the overall user experience still falls short. “As a Coinbase customer myself, it doesn’t yet meet my own bar,” he said. Despite the improvements, some users remain frustrated. One reported being locked out of their account for over two years, while another said they left Coinbase entirely after an eight-month freeze. A third blamed the poor customer service experience, citing long wait times and difficulty speaking to live support staff. Security Concerns Still Linger After Breach The timing of this update comes as Coinbase attempts to restore user confidence following a mass data breach that compromised over 70,000 customer accounts . In that incident, malicious actors bribed overseas customer service contractors to access sensitive personal information, including government-issued IDs and home addresses. Although the breach occurred in December, it was only publicly disclosed in May. One X user even claimed their family friend lost Bitcoin and Ether due to a scam linked to the stolen data. Coinbase, which serves over 100 million users and is the largest custodian of spot Bitcoin ETFs in the U.S., has committed to reinforcing its security protocols. But for now, reducing account freezes is seen as a major step toward regaining trust among its global user base. The post Coinbase Slashes Account Freezes by 82% Amid User Backlash appeared first on TheCoinrise.com .
Source: The Coin Rise
