Coinbase has cut the number of unnecessary account freezes by 82%, the exchange’s CEO announced last week. It was a problem that many users said went on for far too long. Now the company says it’s close to fixing the worst of it, but some customers remain wary.
Based on reports from inside Coinbase, most of the progress comes from the work of Dor Levi. He joined the product team nine weeks ago with a clear goal: stop freezing good accounts. The company invested heavily in its machine learning models. Those upgrades seem to have paid off. Coinbase says its new systems catch more bad behavior while letting normal trades go through.
If you’re on CT, you know how significant this issue has been for users. I myself am a Coinbase user and our restriction experience is not meeting my own bar.
The breach wasn’t disclosed until mid-May. That gap has frustrated many. One user even shared a story of a family friend losing Bitcoin and Ether in a scam they believe was linked to the hack.
Coinbase will still comply with court orders and sanctions that require account freezes, Armstrong and Levi said. Those freezes are not part of the 82% reduction. They are a separate matter entirely. The company needs to meet legal rules in the US and abroad. Users who believe their freeze is tied to those rules should contact support for details.
Some users say it’s nearly impossible to reach a live support agent. One X commenter wrote that tracking someone down “can take forever.” Another said he has been locked out for two years. Armstrong asked any customer with a frozen account to get in touch with support. But if users can’t make a call or start a chat, even the best model won’t help them feel heard.
Coinbase is the top custodian of spot Bitcoin exchange-traded funds. Cutting unnecessary freezes is a step forward, but real trust takes time. Users will want clear updates on how the new system works, and they’ll want proof that their data is safe. If Coinbase can keep its word, it may finally calm the people who felt locked out for far too long.
Featured image from ARZDigital, chart from TradingView
