Crypto investigator ZachXBT has publicly criticized Coinbase, calling out the favored crypto alternate for repeated account lockouts and an undisclosed information breach, which he claims led to thefts.
Within the newest tweet, the on-chain sleuth expressed his dissatisfaction and said that Coinbase had locked him out of his account twice up to now month with out offering an evidence. He additionally highlighted the corporate’s failure to transparently disclose a latest breach that uncovered buyer information, which allegedly led to monetary losses for some customers.
Whereas acknowledging that Coinbase provides aggressive annual share returns on stablecoins, ZachXBT concluded that he couldn’t suggest the platform to others as a consequence of these unresolved points.
Information Breach, Account Lockouts, and Lack of Transparency
ZachXBT’s feedback come amid rising considerations about Coinbase’s dealing with of person safety and help. Regardless of advertising and marketing itself as a safe, clear, and controlled platform, the alternate has confronted a collection of challenges.
Coinbase, which went public in 2021, has lengthy positioned itself as a gateway to the crypto world for each institutional buyers and newcomers. Nevertheless, incidents just like the one ZachXBT described paint a special image for extra skilled customers.
This isn’t the primary time ZachXBT slammed Coinbase. He had beforehand lashed out on the alternate’s management for failing to report theft addresses, present responsive help, or react swiftly to threats. His findings revealed that not less than $65 million was stolen by these scams between December 2024 and January 2025.
The scammers allegedly impersonated Coinbase help utilizing spoofed communications to trick customers into transferring funds to compromised addresses. ZachXBT attributed the scams to Indian teams and low-level cybercriminals whereas criticizing Coinbase’s insufficient response.
Coinbase Controversies
This newest remark provides to a historical past of security-related considerations for the platform. In 2021, Coinbase customers reported being locked out of their accounts for prolonged durations, usually throughout occasions of excessive volatility available in the market. Many of those customers struggled to get well timed help, resulting in important monetary losses.
Coinbase confronted accusations of account restrictions final October as nicely. Throughout the identical interval, a number of customers of the platform additionally reported safety threats, with attackers impersonating Coinbase help. A researcher beneath the pseudonym ‘pcaversaccio’ lashed out at Coinbase’s place on VPNs, which was defended by the platform.
The alternate’s Senior Director of Product Administration, Scott Shapiro, later clarified that VPNs alone don’t elevate flags, however mixed with suspicious exercise, akin to unfamiliar logins, they might immediate safety checks.
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