Coinbase brazenly stealing customer funds. Let's boycott them!

[marky89]

Coinbase has announced that they won't be supporting ETC. That's all well and good. Except that customers have sent them ETC, both intentionally and unintentionally (due to replay attacks). Despite clearly controlling the private keys to customer ETH addresses (therefore also ETC addresses), they are refusing to honor those deposits and pocketing the money!

See:










Coinbase is already a black eye on Bitcoin -- from baselessly closing accounts and blacklisting coins and double ACH debiting customer bank accounts, to backing the Bitcoin Classic fork and pumping Ethereum, and now stealing customer funds.

Boycott Coinbase!

[erikalui]

Now this sounds scary. I shifted from Xapo to Coinbase and now Coinbase taking away user's funds makes them look so shady. Do they do it to BTC users as well where they can just keep all our bitcoins and refuse to return the same? I thought they were only freezing accounts dealing with gambling or other illegal websites.

[Slark]

They are probably the 1st popular bitcoin exchange platform, and that is showing by their brazen behavior.
People are complaining about their frozen funds, suspended accounts, aggressive monitoring policy of every transaction.
But this is new level of being a dick and I hope "Coinbane" will learn that sooner that later.

[sofu]

They are maybe waiting weeks with allowing ETC withdrawals because they have to buy them back and waiting for lower prices.

Probably they got emtied and got rekt.

https://twitter.com/desantis/status/758104013766266881

RED FLAGS.

Don't hold coins at coinbase. Remember Gox and Cryptsy.

[sandaq]

I've heard so many horible things about coinbase and I'm just a month into bitcoin. The hold funds for no reason, they close accounts, they do solve the problems of the users. Mostly I've heard that once you get your funds in there, you can never get them back.

[marky89]

They are maybe waiting weeks with allowing ETC withdrawals because they have to buy them back and waiting for lower prices.

Probably they got emtied and got rekt.

https://twitter.com/desantis/status/758104013766266881

RED FLAGS.

Don't hold coins at coinbase. Remember Gox and Cryptsy.

Yes, it's very obvious that they got replay attacked if you look at the course of events. Customers were withdrawing ETH and were receiving both ETC and ETH.

I wouldn't assume this makes them insolvent. They were/are insolvent regarding ETC liabilities, but I believe they are pretty well capitalized -- too well to be taken down by this. Nevertheless, it shows their incredible sloppiness and puts into question their capabilities to act as custodians for customer funds.

[Kevinatin]

They are maybe waiting weeks with allowing ETC withdrawals because they have to buy them back and waiting for lower prices.

Probably they got emtied and got rekt.

https://twitter.com/desantis/status/758104013766266881

RED FLAGS.

Don't hold coins at coinbase. Remember Gox and Cryptsy.

Yes, it's very obvious that they got replay attacked if you look at the course of events. Customers were withdrawing ETH and were receiving both ETC and ETH.

I wouldn't assume this makes them insolvent. They were/are insolvent regarding ETC liabilities, but I believe they are pretty well capitalized -- too well to be taken down by this. Nevertheless, it shows their incredible sloppiness and puts into question their capabilities to act as custodians for customer funds.

The replay attack is true event. I sent ETC to Poloniex using the old non fork chain, but the Poloniex received both my ETH and ETC.

[Cereberus]

Now this sounds scary. I shifted from Xapo to Coinbase and now Coinbase taking away user's funds makes them look so shady. Do they do it to BTC users as well where they can just keep all our bitcoins and refuse to return the same? I thought they were only freezing accounts dealing with gambling or other illegal websites.

Why going from a really bad wallet like Xapo to a worse wallet like Coinbase. I don't know about Xapo but in Coinbase you don't hold your private keys and as long as you don't hold your private keys you don't hold any bitcoin. Multibit or Multibit HD is a solution to this problem but if you are keen on continuing to use web wallets at least use blockchain.info, they don't freeze accounts and you hold your private keys there which means you own your bitcoins.

[marky89]

They are maybe waiting weeks with allowing ETC withdrawals because they have to buy them back and waiting for lower prices.

Probably they got emtied and got rekt.

https://twitter.com/desantis/status/758104013766266881

RED FLAGS.

Don't hold coins at coinbase. Remember Gox and Cryptsy.

Yes, it's very obvious that they got replay attacked if you look at the course of events. Customers were withdrawing ETH and were receiving both ETC and ETH.

I wouldn't assume this makes them insolvent. They were/are insolvent regarding ETC liabilities, but I believe they are pretty well capitalized -- too well to be taken down by this. Nevertheless, it shows their incredible sloppiness and puts into question their capabilities to act as custodians for customer funds.

This is what happens when you don't watch an altcoins for a couple of weeks, there's a fucking classic of Ethereum? It's still in beta, no?

The ETH Foundation / Slock.it pushed a hard fork to bail out the DAO. Only a small minority of miners voted, but the mining pools still enforced the fork, as well as all major user clients and exchanges. So the fork was highly contentious. Miners continued to mine on the original blockchain, thus we have two surviving chains.

Ethereum Classic is the original blockchain/network. It doesn't recognize the DAO bailout fork as valid.

[outatime1]

This is very surprising. They are a fairly well established company and have been around for a few years now. I hope they aren't going down hill because I have used them many times in the past. Luckily I only have a few cents worth of bitcoin in my account with them right now.

[QuestionAuthority]

You can't boycott them, they have the support of the US government!

[Shiroslullaby]

Wow that's super shady...
I've been using Coinbase to buy a little bit of BTC because it was so easy and the fees were low.
But idk how I feel about supporting a company that does something like this.

I know the ETH fork is causing issues for everyone, but its a on the company to take the loss if something happens, not pass the loss onto your customers.
That is the price of doing business. The image of your brand in the long run should be worth more than the few dollars you would lose IMO.

[topiOleg]

Boycotting is not enought, ETC has value so I see lawsuit possible. If they dumped the ETC at any exchange they have to buy back and return, if they did nothing then they have the private keys so just a bit work for them.

By the way ETC is the original, so it looks like scam attempt from Coinbase to give you some forked and potentially worthless coin instead. Dunno why everybody renamed original coin to ETC, and the fork to ETH.

[BitMaxz]

Well i agree about that coinbase is not a good wallet anymore because i experience of problem 2 times.. in their wallet that why convert to other wallet also their exchange buy and sell bitcoin is not supported in my country.. Also halving issue too when i was addicted in gambling try to send my balance from gambling site and receive in their wallet but always receive pending process from gambling this is te worst wallet that i experience thats why i convert into electrum..
Well if you can boycott them,! ill support you..

[Raimonn]

This is another good example of why users have to care about its private keys (if you don't have the private key, you don't have the coins), storing your coins on exchanges isn't a good solution, on a fork it depends on its decision.

[topiOleg]

storing your coins on exchanges isn't a good solution, on a fork it depends on its decision.

You basically say the exchange can give you the worthless coin, and keep the valuable one, no questions asked. Maybe exchanges could initiate the forks with some hash rate themselves, and decide what is best for them. Fortunatelly its called stealing, and you definitively have case for a lawsuit.

[NyeFe]

I've never used a centralized exchange before. I still don't understand why people leave funds in them! at the least, purchase sub -$150.00 of BTC at a time and dump them into a cold wallet or even in blockchain.info. There's no need to leave your funds in an exchange because they have a fancy web design.

[JeffBrad12]

Now this sounds scary. I shifted from Xapo to Coinbase and now Coinbase taking away user's funds makes them look so shady. Do they do it to BTC users as well where they can just keep all our bitcoins and refuse to return the same? I thought they were only freezing accounts dealing with gambling or other illegal websites.

Well, coin base more and more become a worst site, but I sure it's will never happen with coin base and important they're having a partnerships with PayPal. but where from you can know if the freezing account is dealing with gambling or other illegal websites?

[illyiller]

This is pretty messed up. Charlie Lee was in the Slack detailing Coinbase's position. They are indeed refusing to honor deposits to keys which they control.

A couple points to note:

1) Coinbase made a conscious decision not to protect customer ETC.
2) The ETH Foundation told Coinbase to ignore the prospect of replay attacks.
3) Coinbase did nothing to prevent replay attacks.
4) "We were under no obligation to care about anything else sent to our ETH addresses."
5) "We have not closed the loophole. We may or may not."

https://twitter.com/desantis/status/758442180683960320
https://twitter.com/desantis/status/758443264676618240

[QuestionAuthority]

How can you not trust Coinbase? They're in murrica an fully comply with the lawz. The murrican govt will get ur banking info from them faster than they could get it from Wells Fargo. What's not to love?