- Coinbase’s image is damaged, especially for serious traders.
- It is facing a lawsuit from the SEC since 2023.
- Crypto investigator ZachXBT raised doubts about its trust and transparency.
Crypto investigator ZachXBT recently condemned Coinbase after being temporarily locked out of his account twice within one month without a reason.
In a tweet, he also stated that Coinbase did not publicly disclose a data breach that reportedly caused some users to lose money. Although he stated that the platform provides good returns on stablecoins, ZachXBT said he would not recommend Coinbase to others due to these grievances.
ZachXBT Criticizes Coinbase
This is not the first time that he has raised voice about the exchange. He previously pointed out delays in reporting stolen funds and poor customer support, tracing scams that had cost users millions to groups using Coinbase’s name for fraudulent purposes.
The exchange has also seen such complaints in the past, including account lockouts in 2021 that left users out of reach of their funds during market volatility. In the same year later on, a security flaw allowed hackers to breach defenses and steal from some accounts. Coinbase later refunded some users but was criticized for slow communication.
Past Security Flaws and Delays
Coinbase, a popular crypto exchange listed in 2021, markets itself as trustworthy and user friendly. Yet, recent events have affected its image, particularly among serious cryptocurrency traders.
In 2023, the U.S. Securities and Exchange Commission charged the company with its business operations. Remarks from ZachXBT, an influential person who is popular for calling out crypto scams, showing more doubt about Coinbase’s trust and transparency.
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