Users Complain About Ghostly Coinbase Withdrawals That Leave Them Broke

Users Complain About Ghostly Coinbase Withdrawals That Leave Them Broke

More and more users of Coinbase are lamenting that this crypto trading venue whipped away off-limits funds from their accounts. In some instances, people were left with their below-zero-credit accounts and now are not capable of covering their living needs.

Weird Withdrawals

One Reddit user, who writes under the nickname vancitywebguy, in a post, claimed that he/she bought BTC, ETH, and LTC on Coinbase for $300 in general last Friday. After some time, as the user stressed, the transactions duplicated several times and cost him/her $1,500 despite the fact the user had not bought anything else. Therefore, vancitywebguy also faced bank charges. In particular, the user wrote:

Our top trading bots

"My bank account went from very comfortable to negatives balance, not to mention extra $5 charges and overdraft fees. As a result, my rent check bounced, and my bank went further into negative for an NSF charge for $25. My landlord is not a nice person and is on my CASE, and I have nothing to offer him. I am FREAKING OUT."

Not The First Case

According to CNBC, representatives of this crypto burse had been dealing with parallel grievances for about 14 days. However, as it seems, the number of complaints scaled up within the last day. People started informing about resembling cases in discussions on Twitter.

The media outlet also contacted another Coinbase user, based in the US state of Virginia, – Pete Kingree. He provided a screenshot with, according to his words, unallowed charges to the trading venue and complementary bank dues. If the last ones were just $7.54, the first ones totaled $931.

Cyber money exchange’s another customer Mike Baldesarra also showed CNBC a screenshot from his bank. It read replicated operations were totaling approximately $300. Even though money for one of the charges was sent back to him in nearly two weeks, later Baldesarra suffered another ghostly repeated fee which has not been paid back as of writing. The user pointed that he knows the cases where people have to face more massive unauthorized withdrawals by Coinbase.

Another striking example is that exchange’s client Joel Hirtle faced two ghostly charges for $100. The first charge sent his Scotiabank account into minus and ended up for Hirtle in $144 in overdraft fees. Fortunately for him, two $100 charges were paid him back, however, with some delay.

Interestingly, an analogous case happened to this exchange nearly two years ago – in late spring 2016.

Why is Coinbase Withdrawing People’s Money?

On February 4, a Coinbase rep claimed that some of the clients were double charged. However, it was not clear whether that happened as a result of the latest change to credit cards classifications to exchange’s transactions. Hence, all the users, who faced the issue, were asked to report about duplicated charges, providing to the crypto trading venue their bank and dates of financial operations. By the way, this initiative was met with a backlash, as some people considered it to be safety jeopardy.

After ten days, on February 15, another exchange’s rep posted on Reddit:

“The unexpected charges are originating outside of our control, and are related to charges from previous purchases."

The Coinbase’s employee also added that currently they are trying to refund the money, but he did not mention whether overdraft charges, which came as a consequence, will be paid back as well. Also, the rep said that the case is being probed and any findings will be reported as soon as possible.

At the same time, as CNBC informs, the exchange refused to comment on how many of their customers were negatively influenced, what the key reason of the issue is, and whether the overdraft charges coming as a consequence of repeated withdrawals will be refunded. In an email, Coinbase’s rep said:

"We're aware of the issue and will be posting updates via Reddit, Twitter, and our company blog. We'll be reaching out to affected users to solve the issue as required, as well as posting updates via social channels."

It is also noticeable that the current week has been quite challenging for the California-headquartered crypto burse operating worldwide. Notably, it transiently shut down PayPal transactions and deactivated adding new credit cards as a payment method for US-based customers. On top of that, the exchange presented a new product for negotiants named Coinbase Commerce. And this all against the background that bitcoin recovered to $10,000 after dropping significantly on February 1 – February 6.

Coinbase Cloud launches Avalanche developer tools suite
Web3 developer hub Coinbase Cloud has added a suite of tools to support development on the Avalanche blockchain and smart contract platform.As part of the...
Bitcoin well positioned to help governments create cheaper CBDCs: Deloitte
A new study from financial services giant Deloitte highlighted the potential of Bitcoin (BTC) as a base from which to create a cheaper, faster and more...
TreasureDAO engineer alleged to have past involvement in questionable NFT projects
On Wednesday, decentralized finance (DeFi) detective Zachxbt published a long thread on Twitter about TreasureDAO’s front-end engineer Just Cheese, or JC,...
NFT music platforms to disrupt Spotify in 2022, Saxo Bank predicts
As popular music streaming services like Spotify cut much of musicians’ revenues, new technologies like nonfungible tokens (NFT) will likely help artists...
New study reveals which US cities lead crypto hires in 2021
Metropolises have led the crypto-related hires in the United States in 2021, but jobs in the space are well-dispersed around the country, LinkedIn data...
Bitcoin gears up for $47K assault — Can BTC price overcome make-or-break resistance?
Bitcoin (BTC) looked set to challenge critical $47,000 resistance on Tuesday amid a perfect storm of dwindling supply and “exhausted” bears.BTC/USD 1-hour...
Crypto and blockchain jobs' share grew 118% in 10 months, new data shows
Gathering together the most recent data on the cryptocurrency and blockchain job market, a new report suggests that higher levels of institutional adoption...
After a 273% rally, this key indicator signaled that CELO price was overextended
Now that altcoin season is upon us again, multiple tokens are witnessing illustrious price hikes every day. In a sideways market, a key skill for a trader...
Price analysis 8/11: BTC, ETH, BNB, ADA, XRP, DOGE, DOT, UNI, LINK, SOL
Bitcoin’s (BTC) strong recovery and march toward the psychological level at $50,000 has improved the overall sentiment in the crypto sector. That has boosted...
After googling it, CFTC boss says DeFi is a ‘bad idea’ and probably illegal
Commissioner Dan M. Berkovitz of the Commodity Futures Trading Commission (CFTC) believes DeFi derivatives platforms may contravene the Commodity Exchange...
CBOE files another Bitcoin ETF application with the SEC
The Chicago Board Options Exchange, or CBOE, has filed Fidelity’s Wise Origin Bitcoin (BTC) exchange-traded fund with the United States Securities and Exchange...
NFT trading cards: A new way to own collectibles or an asset bubble?
Unique items have long been attracting collectors who are willing to pay top dollar to get them. Paintings, baseball cards, stamps, vintage cards and rare...
Crypto payments banned in Turkey — Is this just the beginning?
Buying something with Bitcoin (BTC) in Turkey will soon be illegal, and the topic of crypto payments has become a political debate since the Central Bank...
Australians can now exchange solar energy credits for beer with blockchain
Asahi’s Australian lager beer subsidiary Victoria Bitter has taken a step toward sustainability by allowing customers to earn a pint with solar energy via...
SEC Extended Decision on VanEck-SolidX ETF, Again
Potential Bitcoin ETFs do not stand high in the eyes of the American securities agency. Recently, the SEC prolonged a rule adjustment bid which would permit...