PSA: Coinbase.com is a fraud

[accord01]

Coinbase.com is NOT an exchange, it is NOT a service... it is a company made for the SOLE purpose of being a front for their trading activities and using customer funds as a hedge for their bad trades.

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=145797.20


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 smaller transaction, 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.

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.

Trance,

Sorry for the confusion here. We use machine learning algorithms to prevent fraud and they're not always 100% accurate. If you feel you've had a transaction cancelled incorrectly send support an email. We regularly review transactions and push them through at the original purchase price upon request. I also wrote a bit about our fraud program in the fourth section here:

http://newsbtc.com/2013/11/07/coinbases-olaf-carlson-wee-answers-questions-users-technical-issues/

Hope that helps!

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.

[danneu]

"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!

The Coinbase email says that they refunded you. Are you saying they actually didn't?

[accord01]

"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!

The Coinbase email says that they refunded you. Are you saying they actually didn't?

Read the whole post and the other threads.

[danneu]

I did.

The term "fraud" is so overloaded and conflated in the posts that I can't tell if "they stole my money" is lamenting legitimate fraud or the differential value of btc since their refunded purchase.

[accord01]

I did.

The term "fraud" is so overloaded and conflated in the posts that I can't tell if "they stole my money" is lamenting legitimate fraud or the differential value of btc since their refunded purchase.

The term fraud means taking money from someone via deception...

this is a good post explaining how coinbase defrauds:

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

[xan_The_Dragon]

maybe this should be moved to scam thread?

[malaimult]

it's a sort of scam... it's a sort of using peoples money to buy and sell bitcoin....
i will complete that complaint since i'm in the same boat as you are

[Edward50]

What other exchanges would you recommend to use to buy bitcoins?

[Mort432]

...isn't this basically what banks do in today's world?
The only difference is that Coinbase is doing it on a smaller, riskier scale.
If your local bank lost all your money (Greece) then the general answer is the same; Tough shite. The world we live in.

[malaimult]

i'm curious about the instant buy option. If you buy 10 btc and they credit your coinbase in minutes do they cancel your bank transactions even if they gave you 10 btc first?

[Edward50]

Remember to setup instant buy you have to have made a transaction and have waited 30 days.

[malaimult]

Remember to setup instant buy you have to have made a transaction and have waited 30 days.

i'm 1 year old. try it before the option for instant buy and all worked ok. but now since the credit card option i didn't. will have to apply with the coinbase rules and update a credit card on file.

[501]

I've bought from Coinbase 5 times and have had no issues whatsoever. Most recent 2 trades were in terms of huge volatility (bought in at $570 and price was $750+ when the coins were delivered to me).

If you're having problems with them just use the instant buy and there's no way those orders can be cancelled.

[manuel]

Unconfirmed but I heard they are somehow connected to the goldman sachs!

[malaimult]

I've bought from Coinbase 5 times and have had no issues whatsoever. Most recent 2 trades were in terms of huge volatility (bought in at $570 and price was $750+ when the coins were delivered to me).

If you're having problems with them just use the instant buy and there's no way those orders can be cancelled.

i have the instant buy enabled now. They cancel the transaction from beginning.  i don;t know what is wrong with them. i have 1 year with them, almost 100k in bitcoins bought with them and they cancel every thing i do. They gave me a response about some algorithms etc. I read somewhere here that i need to be whitelisted. Anyway f**k them.

[501]

I've bought from Coinbase 5 times and have had no issues whatsoever. Most recent 2 trades were in terms of huge volatility (bought in at $570 and price was $750+ when the coins were delivered to me).

If you're having problems with them just use the instant buy and there's no way those orders can be cancelled.

i have the instant buy enabled now. They cancel the transaction from beginning.  i don;t know what is wrong with them. i have 1 year with them, almost 100k in bitcoins bought with them and they cancel every thing i do. They gave me a response about some algorithms etc. I read somewhere here that i need to be whitelisted. Anyway f**k them.

So instant buy isn't working for you either?

That's strange. I did not need to be whitelisted.

[Malooka]

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.

I filled out the form, and got a form letter in the mail.  Not holding my breath on them to help me out.

And what sort of company is located in San Francisco, yet has a mailing address in Oregon?  It just screams "scam."

http://coinbasefraud.com

[ataulf]

Is this only true for traders or for anyone with btc held on their service?

[Ridicuss]

Is this only true for traders or for anyone with btc held on their service?

I hope I dont run into the same problems as above.

My experience with coinbase has been positive. I have moved about 75K in trasactions with them. Buy instantly as well as selling on an almost daily basis. I sell my mining coin on a daily bases to show income for tax puposes. I have been doing about 600 a day when btc is over 900.

So far the only problem I have had was before I had instant buy enabled.. I had an order in to buy but had to wait, during that time I moved money to a different account and when coinbase went to withdraw it was NSF transaction cancelled, not their fault at all.

If I start having issues with them in the future I will post back here.

[malaimult]

Is this only true for traders or for anyone with btc held on their service?

I hope I dont run into the same problems as above.

My experience with coinbase has been positive. I have moved about 75K in trasactions with them. Buy instantly as well as selling on an almost daily basis. I sell my mining coin on a daily bases to show income for tax puposes. I have been doing about 600 a day when btc is over 900.

So far the only problem I have had was before I had instant buy enabled.. I had an order in to buy but had to wait, during that time I moved money to a different account and when coinbase went to withdraw it was NSF transaction cancelled, not their fault at all.

If I start having issues with them in the future I will post back here.

so far my experience with them was the same. But i made a purchase before coinbase reached 1000 and they canceled in the last minutes since i bought @ 230 and they had to pay triple, and they canceled my purchase.  it has been past 5 weeks and every transaction i do with them is canceled. Once they have your account on the block side it's very hard the get it back.