(SOLVED) Coinbase fraud alert!

[movellan]

/rant on

On March 31 I placed an order with Coinbase for 2 BTC. Current price at the time was 93+ USD. Order went through with a total of $188.62 including commission and bank fee. Coinbase comfirmed my 2 BTC would be delivered by 7 PM EDT today, April 4.  I checked my bank shortly after 7 PM and no withdrawal had been initiated. Emailed Coinbase as to what happened to my BTC and received the following response,

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On Mar 31, 2013 you purchased 2.00 BTC via bank transfer for $188.62.

Unfortunately, we have decided to cancel this order because it appears to be high risk. We do not send out any bitcoins on high risk transactions, and your bank account will not be charged.

Please understand that we do this to keep the community safe and avoid fraudulent transactions. Apologies if you are one of the good users who gets caught up in this preventitive measure - we don't get it right 100% of the time, but we need to be cautious when it comes to preventing fraud.

You may have more luck trying again in a few weeks. Best of luck and thank you for trying Coinbase.

Kind regards,
The Coinbase Team
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My response,

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What a crock! You back down on an order because to fulfill it is going to cost some money. Forget about the fact that it was a validly concluded transaction. You refuse to own up to it. The only high risk about the transaction is to your wallet. How dare you suggest my purchase might be fraudulent! Have a good day and I hope you do well in business.
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I will post updates if any follow.

/rant off

Update:  Coinbase replied that they will push through the transaction at the original rate. As suggested here, I asked to be placed on a "whitelist" to prevent future problems.Will post more if any follows.

FINAL UPDATE:  Coinbase credited my bitcoin and debited my bank account at the agreed price. +1 for Coinbase. I have since placed another order with no problems.

[the joint]

This has happened dozens of times prior to your case.  Just write them an email claiming the legitimacy of your transaction and they'll likely "whitelist" you so you won't run into this in the future.

[fumblefingers]

 Fool me once, shame on — shame on you. Fool me — you can't get fooled again

[minternj]

High risk meaning they would lose money selling the BT to you? Good thing i never used them, they were always out of BT when i tried.

[movellan]

This has happened dozens of times prior to your case.  Just write them an email claiming the legitimacy of your transaction and they'll likely "whitelist" you so you won't run into this in the future.

Thanks for replying. Unfortunately an email proclaiming my transaction to be legit will probably not do much toward receiving my 2 BTC as Coinbase stands to lose on the transaction if honored. The idea of my purchase being "high risk" or "fraudulent" is just a BS screen to cover Coinbase welching on the deal.

[hiima]

You just need to email them with more proof that the account is yours. They don't want to lose money because you are using a stolen bank account.

[movellan]

You just need to email them with more proof that the account is yours. They don't want to lose money because you are using a stolen bank account.

That might fly except for the fact that I have purchased BTC from them previously using a withdrawal from the same bank account and had no problems. I think it is clearly a case of Coinbase refusing to honor a verified transaction because the agreed price is no longer in their favor.

[yvv]

Yes, they do not want to risk their ass. They better just cancel the bargain. So many people want bitcoins this days that it is a pain in the ass to get them for fiat. Try something else. May be work for bitcoins?

[gfoot]

The word "luck" appears two times too many in their email.