Bitcoin Forum

Coinbase.com is NOT an exchange, it is NOT a service... it is a company made for the SOLE purpose of trading and hedging customer funds and defrauding the customers and getting away with it.

I don't know where to begin when it comes to coinbase.com being dishonest in their practices, website, terms of service, and blog responses... all to defraud the customer.  For some of the customers that they defraud via the "high risk transaction" scheme, they actually recreate the original transactions and make it right.  For others (most likely the larger amounts they pocket), they simply never respond, leaving you hanging and burning.

They even give you back the money they steal from you SOME of the times, to make it look like they are not a total scam.  Other times, they pocket the money and simply stop responding to you or respond with this email:



"I am extremely sorry for the confusion on this. I've taken further steps to review your account and at this point we've been able to get you whitelisted. Any future purchases you make from this point forward will not encounter this cancellation. Unfortunately, since the refund has already been sent out on these original purchases, I'm unable to push through or re-create the original transactions.

Again, I apologize for the frustration this has caused. If you need further assistance please let me know and I'll be happy to help!"





What? You admit it was YOUR fault, but you can't give me back my money???  and you're sorry? and you'll be happy to help??? This does not compute!

They have stolen money from people who have previously done HUNDREDS of successful transactions by canceling orders and calling it a "high risk transaction".

They have also canceled bitcoin transfers WITHOUT notice or any record in the history.

Here is a small collection of threads showing how coinbase has profited off of customers by stealing their money via the high risk transaction scheme:

https://bitcointalk.org/index.php?topic=339882.0

https://bitcointalk.org/index.php?topic=145797.0

https://bitcointalk.org/index.php?topic=339849.msg3655636#msg3655636

https://bitcointalk.org/index.php?topic=328076.0

https://bitcointalk.org/index.php?topic=322631.msg3454765#msg3454765

https://bitcointalk.org/index.php?topic=322229.0

https://bitcointalk.org/index.php?topic=321684.msg3450929#msg3450929

https://bitcointalk.org/index.php?topic=328013.msg3531406#msg3531406

https://bitcointalk.org/index.php?topic=328013.msg3526610#msg3526610

https://bitcointalk.org/index.php?topic=338172.msg3627572#msg3627572

http://bitcoin.stackexchange.com/questions/14195/did-i-just-get-defrauded-by-coinbase

Personally, coinbase canceled 3 orders of 15 bitcoins that has costed me over $6000.00 as of right now.  They simply stopped responding to my support ticket.  And the last email I got from them it said the following:

1) It was their mistake, and sorry for all the hassles such as holding your money in limbo for so long and the emotional hassles

2) You have been whitelisted

3) You won't be able to get your money back and the money that you should have made, we have already pocketed it (aka we are selling those bitcoins of yours for a MUCH higher price now).

4) But if you stay with us, we guarantee you won't be robbed again.  Thank you and come again.


Personally, I think it is VERY smart for them to give back what they have stolen in the smaller transactions that they flag, such as .5 btc or 1 btc, and pocket the larger ones like mine... So they can say, "see, we made a mistake but we corrected it"

Thanks for ruining people's lives, coinbase.com!

One more thing, we, the customers aren't exactly helpless though.  Thank God for the land of the free.  I hope EVERYONE (not just the people that have been robbed) files a complaint with coinbase.com.  Sure it could be useful for those that have dodged the bullet, but a company like this CANNOT be good for digital currencies in the long run.

Here is the form, very simple to fill out:

http://oag.ca.gov/contact/consumer-complaint-against-business-or-company


And from what I've heard, they are quite capable of getting you something compensated.

Just fill out coinbase.com for the company or maybe fill out San Francisco for city.  Coinbase obviously doesn't supply an address or contact info.

For bitcoin to be healthy, companies like coinbase.com needs to be weeded out.

Edit:

Here is just an example of how Olaf, there head spokesperson/support tells a lie with ease:

 it is unbelievable how he just casually makes a dishonest statement.


This is just a straight up lie, they don't regularly push transactions through at original purchase price upon request.  They didn't do it for me because the amount was so high.

From what i've known, none of the higher amts where they have ripped people off have they refunded.  Only small amts.

I agree with this. This company is hurting the bitcoin industry. I don't know how else I'll sell my bitcoin, but I'm sure I'll figure a way and they won't want my bank information, credit cards and pin#'s, phone numbers, family members names, telephone, address,  and whatever  else information they have on me. What do I have on them? Basically nothing. Not even an address or phone number. Just an occasional email response from some rude kid that doesn't help you at all.

ripoffreport

pissedconsumer

write 500+ words, goto seo clerks and push it to the first page

#winning

DO NOT USE COINBASE!

YOU ARE BETTER OFF PAYING FOR BITCOINS WITH PAYPAL ON THE CURRENCY EXCHANGE FORUM!  >:(

YOU HAVE BEEN WARNED!

Coinbase has yet to respond to me.  I have already reported them to the California State general attorney's office.  The state has responded to me and has referred me to a list of lawyers.  I will wait a little bit longer to see if they respond.

Accord01,

I feel for the position you're in, it's beyond shi##y. I would be just as livid and not cutting them any slack, I'd be emailing every single day with the full story of my complaint and your intended actions.

I know that a lot of folks have no problems with Coinbase, and a lot of folks have no problems, until they do, and it's the big one. This cannot be a simple matter of bad algorithms. Once there is a trusted history between an institution and your bank, there should be no reason on the customer side to encounter these problems.

One thing you said confused me. In their email to you it says "since the refund has already been sent out on these original purchases"

So it would seem they're not just saying "No refund for you, sucka" but in fact they think they've refunded you. Admittedly giving you back your money for the purchase is little solace to losing the profits you wouldve made, but at least you're not getting robbed twice.

Now I have a question for you as a relative newb to this space. I set up with Coinbase and submitted a purchase for .005BC last week (very small just to test out "the process") and they just emailed me with one of their "high risk" notices.

Id be happy to kick them to the curb, but need an alternative. I see a LOT of complaints about Coinbase but very few alternatives for US customers.

Learn to WoT (http://bitcoin-otc.com/). There's never an acceptable justification for giving money to known scam artists (https://bitcointalk.org/index.php?topic=140484.msg1495321#msg1495321).

And that's the lesson, folks. It's not about cheering on crap that clearly has no business handling your money, and relying on Nanny Gov to help you out when shit inevitably hits the fan. It's about taking responsibility for yourself (https://bitcointalk.org/index.php?topic=106391.0) and not using services like these. The warnings have been ample.

How does one "learn" "web of trust" - what does that even mean?

Do you have any suggestions for someone new getting into this? As I said if we are to leave the poor performers behind there has to be better options.

Presuming I can trust you (which I am).

Thanks

Well: http://bitcoin-otc.com

Their wiki explains a lot of the basic how to do things so you can get up and running. The general idea though is to transition from less than incredibly reliable things like CoinBase to doing business with individuals who have their continued reputation staked on a successful trade.

Learning to WoT though involves doing the work and the reading to build your own personal Web of Trust. Bitcoin-otc supplies a nice tool, but you have to interpret the information it contains on your own.

This is unsettling.. because I just opened an account a few weeks ago and completed my first transaction with them. As a test and it took about 5 days from when initiated, but it went through. Now I have a positive balance with them, should I remove my bank account info with them? Is my checking account safe at all?

Coinbase seems like it's down with an "Application Error" now.   :(

i like this thread. let's promote it here so common users should see it.

we all have the same problem with them.

@ Brighterbits

I'm pretty new, so take this with a grain of salt as it's just what I've gleaned recently and from reading the comments of others.

Coinbase is a gamble that breaks down (as I see it) roughly as follows:

50% chance - you will have no problems making transactions that take 3-5 days (this is the standard ACH time and is DEFINITELY the banks fault, and it's archaic and stupid)
30% chance - you will just have your transactions cancelled before they take any money from your account
*18% chance - they will take your money, hold it for 3-5 days, and then just cancel your transaction and (within a couple of days) return your money, without any profit or loss to you
2% chance - they will take your money, hold it, and then just cancel your transaction at which point your money goes into limbo and you never see it again

**This seems like the most common scheme/problem people have run into - They can theoretically make a boatload off your money by having & holding those coins and if there's an uptick in the market just act as if your transaction never went through.

I have NOT read of anyone having unauthorized withdrawals from their banking institution, so I don't consider that a threat.

Good luck!

If you have been scammed by coinbase.com please go to this post to find out how to file a complaint! Bookmark this post as you will need to refer to it when the respective federal and state organization contact you! Or just print it out

https://bitcointalk.org/index.php?topic=375245.0

Coinbase is nothing short of a bunch of fucking thieves!

You guys should to send a registered letter with acknowledgement of receipt, here :

Wait, send an acknowledgement of receipt to coinbase?  Why?  We're not threatening them.  We're trying to get compensated and to stop this madness.

Anyone ever get their issue resolved? Coinbase still won't help me and their last support response was about it takes 4 days for the transaction to complete...It's been almost 30. Coinbase is totally worthless!!!

Super hysteric, baseless accusation, as is the norm here. ::)

Incompetence or not enough employees to handle the accounts does not equate to the above quote.  Not disputing that you have a problem with them, but Jesus, take off the tinfoil hat.

Your fine, ignore the hysteria.  There are issues, and they take a long time to get resolved, but by and large the crap you hear in this forum about Coinbase is just people panicking and shooting from the hip.  We have been conditioned to think the moment something goes wrong, it's a scam!  While there have been scammers  associated with bitcoin, Coinbase is not one of them.  A better thread to look at would be the reddit coinbase thread where a couple employees, (bitcoin batman, cbsupport, cbsupport2) can help you out if you have a problem.

I am mad a Coinbase for spending time contacting Snoop Dogg, blogging, and doing interviews where they pretend everything is alright.  I think they are just immature guys who got in over their heads.  I have been trying to discuss these issues with the venture capitalist and angel investors who are funding these people and the so-called DATA group.  they are completely unreceptive to any discussion of customer service or customer experience.  People who raise these issue are seen as trying to take down the people who are doing good things for Bitcoin.  In a way they are correct because without these crappy services there would be no services at all.

If you read the blogs and tweets of the investors you almost never see customer service issued mentioned.  All you see is discussions of how much investing capital they received. http://cdixon.org is involved in the latest funding round.  If you want a call back you will probably have to say you are representing Snoop Dogg. 

Alright you all need to calm down a lot.

Coinbase is the only legit place to open as far as I am concerned.

Your complaint can be simplified as this: you are new.

Having dealt with exchanges and clearing houses from the inside for a decade, I can assure you that you would have similar problems if you were trying to trade in major exchanges (CME,NYMEX,etc). Except it would take a lot longer to clear your documents and they would not let you trade until they knew you more than you would like to be known.

I would give coinbase a lot of credit for doing as well as they are in the position they are in.

Just because they couldn't fill your first order with them does not make them crooks. It makes you late in getting to the point of opening an account, and expecting everything and everyone to jump through whatever hoops to get you in.

Had your cancelled position lost in value instead of gained, you know what we would be hearing from you?

Crickets. That's what.

For future reference, expect delays and complications any time you are initiating a relationship with an exchange. I don't care how tech savvy it is, there are a hundred things they must consider that you have no comprehension of.

For those asking, with the above caveat, I would trust coinbase and only coinbase at this time.

(edit- yes I know they are not an exchange in entirety, using the term loosely as the same circumstances apply.)

Just to change the tone of this thread... I have had hundreds of successful buy and sells with coinbase and have never once had an issue. Even when buying cheap during a correction.  The company is wayyy better once you get "instant buy" enabled however.  Makes it super easy. 

Coinbase isn't a trading platform so people shouldn't use it as that. It is a way to get in and out of the market. Sometimes the site does crash during huge corrections.  A good way to avoid this risk is selling on Gox or Stamp and then holding USD there until the correction is done. You can then buy back in and send your coins to coinbase.

Bitcoin value is going up pretty fast right now. On Coinbase each coin will cost $865 to buy at this time around. 

when you send out the bitcoin to somewhere else.... is it USD or BTC?

i understand they're wanting to show you USD but it looks like they're sending out USD not 1 actually bitcoin

i dont want to send what THEY think the BTC is worth....

No (https://bitcointalk.org/index.php?topic=140484.0). There's a difference between planning a course of action and following it to industry standard, and deciding it's alright to selectively scam under the guise of extenuating and unforeseen circumstances.

Coinbase's adherence to the latter has been thoroughly laid bare by now (https://bitcointalk.org/index.php?topic=145797.msg1568305#msg1568305). No amount of vague allusion to how you personally might justify your own experience with them matters.

I would be surprised if they were not taking as much on the fills as they can, it's what every forx desk is designed to do. You just don't see it, which is the point.

We get trades busted fairly often in the "real" markets. It's obnoxious for sure. But here is the thing. Everyone who gets a trade busted in their favor (i.e. they bought and the price went down) doesn't say a word. Ever. They crack a beer and wipe their brow and that's it.

The people who have a trade busted that went in their favor, they will rant and rave and bitch to the world to their last breath about it.

Funny thing is they are the same "people" of course, random selection by what trade was busted.

So it's just human nature. Everyone on here thinks they are being scammed because people who got good trades cancelled are going ballistic and people who got bad trades cancelled are not the slightest concerned.

Anyway I don't know how else you expect them to protect themselves. Part of the risk in Bitcoin is when it's gone it's gone, exchanges and banks don't have to deal with this so much.

i don't see too much trade going there...

is localbitcoins a better alternative? i had much better success there. And they have escrow

The indication of whether they've fucked up or not isn't established by the volume or tone of public complaints. Do they purport to offer a service? Is that service in fact being delivered? No? Then they've fucked up. No matter whether some other people got what they wanted. No matter whether some other arguably comparable service did something similar.


I've seen mixed experiences on localbitcoins; you can sift through reviews and whatnot on the forum I guess. Getting in the WoT and trading OTC (http://bitcoin-otc.com/) is probably your best bet though.

I can confirm this is all true..

I have been doing business with Coinbase for quite some time and up until now I thought everything was legit... Until they "decided" to take my money for an attempted purchase... "decide" not to send any BTC.. and then tell me they would refund me in 3 or 4 business days... which  basically means sometime next week...   I reached out to customer support who assured me they were going to look into my problem, fix it personally, and make sure it NEVER happened again... They told me everything was good and that I could go ahead and attempt the purchase again... I did, and the same thing happened, they "decided" to cancel the transaction after taking my money... now I have to wait 3 or 4 business days while thy play with my money and I get nothing.    Meanwhile, the price of bitcoin has gone up so I am now unable to get the purchase price I desired because coinbase "decided" to take my money and send me nothing.  This is criminal, it is fraud and they should be shut down.. Do NOT do business with Coinbase they are a giant scam.

Similar problems were reported by many users, especially in April-May when the price was diving and people thought they were buying BTC at a good price point through Coinbase. What a disappointment.

#Coinbase
#MtGox
#RxIxP soonish

man you people!  Shadows in every corner...  Coinbase is basically another Bitpay.   Coinbase processes for Expedia.com among others.  They are no scam.  Companies have customer service problems daily, including Coinbase, it doesn't mean they're a scam. 

Just stop the hysterics.   

Do not agree to coinbase new terms and contracts!

Make sure you turn on two factor authentication on. When ever I make a BTC purchase I have an SMS code sent to my cell phone. If you don't enter in the correct number you can't buy/move/sell any bitcoin.