The SEC has come up with a 200-page customer complaints data it received from investors against Coinbase.
It should be noted that Coinbase is one of the leading crypto firms which was valued at $8 billion by its own executives. It was established in 2012 and since then has been a tool for worldwide investors to try their hand at the crypto sphere. The company gained enormous profits from the bull run of December 2017 which also took Coinbase’s app at the number one spot at Apple Store.
In a recent announcement, it also informed about its plans to develop an Index fund for institutional investors that have been recognized by financial authorities.
Most of the people from the crypto community have had a mixed experience with the company. The newly released documents reveal that many of the investors faced problems while using the exchange, which are unacceptable from a world-class firm. All of the complaints revolved around the same perception of unacceptable service the firm has provided.
Moreover, some of the investors also accused the company of loss of their funds. They claim that Coinbase stole digital currency holdings from their wallet. After enjoying a tremendous increase in user base, the firm is now finding it hard to manage it on a grand scale while being accused of theft.
While one would argue that some of the cases are just angry customers riding on the enraged wave yet few allegations do hold a solid ground.
One of the clients stated that $21,000 was streamlined with Coinbsae from his/her personal account on August 30th, 2017. But the exchange’s wallet did not realize the amount, and nothing was credited. The company did not respond to any complains made through its support line.
The user stated, “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.”
Another victim of the theft said that he/she connected $1,000 from their Bank of America account to the Coinbase account on December 13, 2017. The users planned for a one-day transaction but even after one month, there were no funds in the account. The user added,
“I have emailed many times, sent them the confirmation details from Bank of America, nobody will reply to an email, nobody calls me back. There is no way a 1-day transfer can take more than a month.”
These are only two cases form the 200 pages of the complaints which shows the severity of the negatives the exchange suffers from. After taking a glance at the ‘/r/Coinbase’ subreddit, the magnitude of the adversity can be realized.
Amidst all the criticism the company feels to be perfectly running over its path to success. It has made announcements about various expansion plans within the past six months. As far as the allegations go, it has claimed to empower its supporting staff. It is only a matter of time till SEC takes a strict action against the exchange which can become the biggest hurdle it has ever faced.