Money transfer, virtual currency, or money service -- Fraud or scam -- Complaint #7999517
Complaint Overview
Complaint ID: 7999517
Company: Coinbase, INC.
Product: Money transfer, virtual currency, or money service
Sub-Product: Virtual currency
Issue: Fraud or scam
State: California
ZIP Code: 935XX
Date Received: 2023-12-13T12:00:00-05:00
Date Sent to Company: 2023-12-13T12:00:00-05:00
Company Response: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Submitted Via: Web
Consumer Narrative
I am a customer of Coinbase. Coinbase is a licensed and registered financial entity based in the United States, Coinbase is obligated to follow regulations, rules, directives, etc., enforced by its regulators ( depending on the jurisdiction ) and other law-making bodies. These include following proper KYC policy, abiding by the XXXX XXXX, and complying with government AML/CTF obligations and responsibilities. Information was sent to Coinbase about an unpleasant incident that involves fraudulent activities conducted by the XXXX company. They convinced me to open a Coinbase wallet to make an investment in the form of cryptocurrency. According to them, I could only deposit to my XXXX trading account through crypto which is why they needed me to open a Coinbase wallet. I then wired from my XXXX XXXX bank account to my Coinbase account which I converted into crypto USDT. From my Coinbase wallet, I was instructed by the scammer to send crypto to wallet addresses provided by them. All in all, I withdrew a total of approximately XXXX USDT over three transactions listed below : - Crypto transaction 1 Amount : XXXX USDT Date : XX/XX/2023 - Crypto transaction 2 Amount : XXXX USDT Date : XX/XX/2023 - Crypto transaction 3 Amount : XXXX USDT Date : XX/XX/2023 As the transfer of cryptocurrency involved my Coinbase wallet, I informed Coinbase that I was able to trace and determine the wallets that were used by scammers to siphon my money. To my surprise, the recipient wallet addresses are unknown and not registered as KYC wallets on any crypto platform. I was under the impression that crypto xchanges like Coinbase are bound to comply with the XXXX XXXX rule which clearly states that VASPs are required to gather sufficient information about the sender as well the BENEFICIARY of a transaction. It is very obvious that Coinbase never investigated the beneficiary wallet address or the owner of that wallet and let the transaction take place without any monitoring. I attached screenshots of the tracing of the fraudulent transaction from my Coinbase wallet along with diagrams as proof that transactions leaving Coinbase are indeed fraudulent. Hence, I urged Coinbase to investigate the matter and trace my funds ultimate destination to apprehend the criminals for this financial crime. I am also of the opinion that Coinbase has neglected me as their customer and allowed me to engage in risky transactions which also makes them liable for my loss and responsible for sufficient compensation.
Frequently Asked Questions
What is Complaint #7999517 about?
Complaint #7999517 was filed against Coinbase, INC. regarding Money transfer, virtual currency, or money service specifically about Fraud or scam. It was received by the CFPB on 2023-12-13T12:00:00-05:00.
How did Coinbase, INC. respond to this complaint?
The company responded with: "Closed with explanation". The response was timely.
What is the risk level of this complaint?
See the risk assessment section for details on this complaint's risk profile.
How do I file a similar complaint?
You can file a complaint with the CFPB at consumerfinance.gov/complaint. Select the appropriate product category (Money transfer, virtual currency, or money service) and describe your issue in detail.
Can I see other complaints against Coinbase, INC.?
Yes, visit the Coinbase, INC. company profile at readthecomplaint.com/company/coinbase-inc to see all complaints, risk scores, and analysis.
Disclaimer
This analysis is AI-generated based on publicly available CFPB complaint data. It does not constitute financial or legal advice.