Nass Eddequiouaq (@nassyweazy), former CISO a16z, recently voiced frustration over his account being restricted on Coinbase, a leading cryptocurrency exchange. In a post on X, he shared an image showing a message from Coinbase stating his account was restricted.
The notification directed him to the Coinbase support page for assistance, but according to Eddequiouaq, the instructions on the support page looped him back to the initial restriction message, leaving him without resolution.
out of the blue, @coinbase restricting my account
(1) restriction instructions: please visit support page
(2) support page: please follow restriction instructions
worst customer support experience pic.twitter.com/RUvuNbQkHm
— Nass Eddequiouaq (@nassyweazy) November 28, 2024
Growing Frustration in the Community
Other users quickly echoed their grievances with Coinbase and similar platforms. One user commented about Coinbase misdirecting him to contact Solana customer service for a problem within Coinbase’s jurisdiction, calling the experience “utter madness.”
Another shared an issue with Kraken, a competing exchange, where his account was abruptly closed. Despite assurances of compliance, including keeping information updated over three years, he was informed that the reason for closure could not be disclosed for privacy reasons.
He speculated the scrutiny might stem from using a Ukrainian passport for Know Your Customer (KYC) processes, despite living outside Ukraine for over 15 years.
Eddequiouaq responded to this user, highlighting that regulated centralized exchanges (CEX) like Coinbase and Kraken might only withhold such information if money laundering, terrorism financing, or sanctioned activities were involved.
While Centralized Exchanges are a crucial part of the crypto ecosystem and often support struggling assets, problems like these frustrate investors, especially when kept in the dark.
Eddequiouaq was not the only one with complaints about Coinbase. One user shared his inability to speak with Coinbase support even after holding on to the chat line for four hours.
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Coinbase CEO Weighs In
Eddequiouaq’s post drew Coinbase CEO Brian Armstrong’s attention. He apologized for the inconvenience, stating that he would look into it.
Taking a look – apologies
— Brian Armstrong (@brian_armstrong) November 28, 2024
This drew some criticism from community members, as one user revealed that he had faced issues for longer periods but had not gotten a response from Armstrong or a resolution from the exchange.
According to him, Coinbase froze his account in 2020, and it stayed that way for ten months, with no updates provided throughout the ordeal. He vowed never to use the platform again.
Coinbase, like other exchanges, operates within a highly regulated environment, often requiring strict adherence to anti-money laundering (AML) and counter-terrorism financing (CTF) laws.
However, the company’s opaque processes and lack of timely communication have alienated users, especially those whose accounts are restricted or frozen without detailed explanations.
Fred Rispoli, a well-known attorney in the crypto space suggested suing Coinbase, and many others suggested self-custody of keys and digital assets to ensure full control and avoid similar situations.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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