Coinbase: I can't withdraw my funds via PayPal

[magnetinik]

Good morning everyone. I write this post to share an unpleasant experience with you. I'll start by saying that I've never had any problems with Coinbase, which I consider a serious and reliable platform. I have always carried out my operations with the utmost tranquility and confidence, and nothing has ever gone wrong. But yesterday, here is the wet blanket. I go to withdraw my funds using PayPal (which I always do) and I get this error:

An error has occurred
PayPal withdrawals are currently disabled. Use another payment method to withdraw funds.

The fact is that I can't use any other payment method because, after entering my bank details, it tells me that this function is also disabled. I have no debit card.
So I thought about buying Bitcoins and sending them to an external address, but I can't make purchases and I can't send cryptocurrencies. In short, everything is blocked!

I contacted support via chat, but bots responded telling me that my problem was taken care of and that they would contact me via email. I am very worried because I am afraid that my funds will be blocked in the account without being able to withdraw them in any way.
I ask you: has something similar ever happened to you?

[OmegaStarScream]

I don't use Coinbase but what are the errors you're getting when trying to withdraw to an external address? I would imagine they at least sent you an email explaining why your account got blocked and the steps to follow to unlock it.
Usually, when an exchange does that, it's because they detected suspicious activity with your transactions or account.  Have you tried calling them?

[BenCodie]

After the announcement of EDX markets and the pursuance of Coinbase and Binance by the SEC, PayPal have probably cut ties with Coinbase or even limited their api/company accounts. That is if the issue is not specific to you, and everyone has the same issue.

Another problem might be kyc/identity. If the name on your PayPal account doesn't match, or the amount was large, that'd make sense too.

[BD Crypto]

So I thought about buying Bitcoins and sending them to an external address, but I can't make purchases and I can't send cryptocurrencies. In short, everything is blocked!

Maybe they disabled PayPal withdrawal for everyone as they didn't mention that only you have been disabled. Another question is why you can't buy buy and send them to other wallets. Maybe only you are restricted for withdrawal. That's why I don't suggest to store funds in any custodial wallets. We should keep as much as we can afford to lose or should withdraw immediately after closing trading positions.

And don't worry about this because sometimes if custodial wallets detect suspicious activities then they disabled withdrawal temporarily. And hope support team will resolve your issu asap as Coinbase is a well-known, trusted and reputated exchange so far.

[Rikafip]

Maybe they disabled PayPal withdrawal for everyone as they didn't mention that only you have been disabled.

Chances are that they would make some sort of announcement if they disabled PayPal for everyone and not just for him (which doesn't make much sense imho, to block paypal for one person).

I contacted support via chat, but bots responded telling me that my problem was taken care of and that they would contact me via email. I am very worried because I am afraid that my funds will be blocked in the account without being able to withdraw them in any way.

All that you can do now really is to wait for their reply. It is possible that Coinbase will ask you for sme additional verification in order to regain full control over your account but once again its proven that keeping your money on CEX is risky, even if its one of the most reputable exchanges like Coinbase.

[magnetinik]

Thank you all for your messages.

Usually, when an exchange does that, it's because they detected suspicious activity with your transactions or account.  Have you tried calling them?

Yes, I think this is it. But I can't figure out what, since I've apparently never violated the regulation.
However, I have received some emails from Coinbase support where they have asked me a lot of questions, which I have answered.
In the last email they told me that I have to wait 5-7 working days for the problem to be resolved. I hope it's like that. The fact is that I needed the money now, not in 7 days.
They tell me that if I can't withdraw via PayPal in 7 days I can do it using another method. But at the moment everything is blocked: I can neither buy nor choose another payment method, nor send cryptocurrencies to an external Bitcoin address. In short, I can only deposit and convert cryptocurrencies into Euros. But I can't withdraw.
I keep you updated. I hope everything works out but I'm not very hopeful.

[OmegaStarScream]

Yes, I think this is it. But I can't figure out what, since I've apparently never violated the regulation.
-snip-

Since this is related to your crypto deposit, it's probably because the funds are connected (and I could be wrong) to a mixer, a gambling site, etc. It doesn't necessarily have to be a direct connection either so maybe you received funds from someone who dealt with the services I mentioned.

[BitMaxz]

It seems that you're not the only one who had some issues using Coinbase over the past few days check this Reddit post below

- https://www.reddit.com/r/CoinBase/comments/141ekq8/are_your_buys_disabled/

It seems they become more strict in regulating users after being sued by SEC. So I think this is just their security procedure to follow the SEC rules and regulations.

[Lucius]

It seems that you're not the only one who had some issues using Coinbase over the past few days check this Reddit post below
~snip~

What is strange is that this user claims that the whole situation has been going on for 8 months, although some others claim that their "problem" was solved in about a month. It seems that users will find their way to DEX one way or another, because using CEX will become like gambling.

[PX-Z]

It seems they become more strict in regulating users after being sued by SEC. So I think this is just their security procedure to follow the SEC rules and regulations.

.
If this is the case then they should give another note or requirements to ask their users but in OP's case looks like it isnt.

@OP try to message them in weekdays if they will give a useful response.

[BitMaxz]

If this is the case then they should give another note or requirements to ask their users but in OP's case looks like it isnt.

@OP try to message them in weekdays if they will give a useful response.

If I'm right he is the same person who made a topic on reddit a few hours ago from this link below he already got a response from Coinbase support but the OP can't provide a Case ID to follow up his case.

- https://www.reddit.com/r/CoinBase/comments/14hjom2/suddenly_i_can_no_longer_withdraw_my_funds_via/

[PX-Z]

If I'm right he is the same person who made a topic on reddit a few hours ago from this link below he already got a response from Coinbase support but the OP can't provide a Case ID to follow up his case.

- https://www.reddit.com/r/CoinBase/comments/14hjom2/suddenly_i_can_no_longer_withdraw_my_funds_via/

Oh okay, so OP really need to contact again and coordinate with its case ID to their support if he wants to solve this issue instead of responding other things, because it looks like he didn't do that yet based on the reddit thread/comments.

[magnetinik]

If I'm right he is the same person who made a topic on reddit a few hours ago from this link below he already got a response from Coinbase support but the OP can't provide a Case ID to follow up his case.

- https://www.reddit.com/r/CoinBase/comments/14hjom2/suddenly_i_can_no_longer_withdraw_my_funds_via/

Hi. Yes I am. I did some research and found that Coinbase had an account on Reddit where they provided support. So I signed up and filed the issue.
In the meantime, this progressed and I was emailed my case ID number. Now I'm waiting for everything to unlock or, at least, to be given the opportunity to withdraw. I understand that a website should take appropriate measures to avoid fraud or anything else, but blocking your account without notifying you or at least informing you of the reasons, I don't find it very fair. I've always used Coinbase without problems, made a lot of transactions, deposits, withdrawals, exchanges. We'll see. I wish you all a happy Sunday, and thanks again for your support.

[magnetinik]

Did you read here?

https://www.reddit.com/r/CoinBase/

Many users have the same problem as me. However, unlike them, I have not received any email about closing the account. We have in common that we cannot withdraw in any way.

[noorman0]

Did you read here?

https://www.reddit.com/r/CoinBase/

Many users have the same problem as me. However, unlike them, I have not received any email about closing the account. We have in common that we cannot withdraw in any way.

I checked that, some users got varying penalty levels.

If I were to interpret the reason for the suspension as "violating coinbase standards" which has yet to be stated, I think the opinion of some of the user comments there is correct that Coinbase appears to be doing a massive user screening and promptly taking appropriate action if it is potentially disadvantageous to their position to face SEC lawsuits.

[sunsilk]

Did you read here?

https://www.reddit.com/r/CoinBase/

Many users have the same problem as me. However, unlike them, I have not received any email about closing the account. We have in common that we cannot withdraw in any way.

I am getting this error upon checking their sub-reddit.

Code:

upstream connect error or disconnect/reset before headers. reset reason: overflow

However, I happen to see those complains and access it and yeah, they're common as yours for unable withdrawals but if you don't have that email of discontinuing your account. I guess that you'll still think of just stop using them to avoid heavier problems in the future.

It seems that you're not alone posting these complains and everyone is having their share with what they're experiencing for their withdrawals. Well, this problem usually is being done by exchanges and if they're telling you that they will settle it within 5-7 days, more or less, nothing can be done but to wait.

[magnetinik]

I guess that you'll still think of just stop using them to avoid heavier problems in the future.

Honestly I do not know. However, such experiences certainly do not increase trust, on the contrary they undermine it.

Well, this problem usually is being done by exchanges and if they're telling you that they will settle it within 5-7 days, more or less, nothing can be done but to wait.

Yes, they told me that after 7 days I could try to withdraw, but there is no guarantee that the withdrawal attempt will be successful.
The fact is that my money is in their possession, and at the moment I cannot dispose of it. It's not a nice thing at all. And luckily it's not about large amounts of money with three or four figures. I don't want to think how those customers who keep large amounts of money will feel.

[sunsilk]

I guess that you'll still think of just stop using them to avoid heavier problems in the future.

Honestly I do not know. However, such experiences certainly do not increase trust, on the contrary they undermine it.

Well, it's still up to you but this inconvenience will make me stop using them.

Well, this problem usually is being done by exchanges and if they're telling you that they will settle it within 5-7 days, more or less, nothing can be done but to wait.

Yes, they told me that after 7 days I could try to withdraw, but there is no guarantee that the withdrawal attempt will be successful.
The fact is that my money is in their possession, and at the moment I cannot dispose of it. It's not a nice thing at all. And luckily it's not about large amounts of money with three or four figures. I don't want to think how those customers who keep large amounts of money will feel.

I'd take that as a guarantee but yeah, wait until the day comes and let them withdraw you. It's understandable what you're feeling right now because if it happens to me and there's a big amount that's involved, I can't really feel relax while waiting the days to pass.

[magnetinik]

5th business day passed, and nothing has changed. And I wait...
In the meantime, I notice on Reddit that many complain of account closures without explanation. All this is quite disturbing…

[joniboini]

In the meantime, I notice on Reddit that many complain of account closures without explanation. All this is quite disturbing…

Some of them are quite conflicting with one user claiming one thing while the other claims another. Some speculation suggests that some accounts are closed because the users live in the states that sues Coinbase, although the proof is thin IMO. There is a long thread that basically claims the user account was closed because he uses VPN. It doesn't help that there is no clarity from the Coinbase side either. I guess you can only wait at this point, and consider moving to other platforms/P2P if they are not being helpful.