Coinbase Reduces Account Freezes by 82% Amid Ongoing User Frustrations and Security Concerns

June 9, 2025 – In a major update for users of the crypto exchange giant, Coinbase CEO Brian Armstrong announced a significant reduction in unnecessary account restrictions—an issue that has plagued the platform for years.

In a June 6 post on X (formerly Twitter), Armstrong acknowledged that long-term user complaints about frozen accounts had become a “major issue” for the company. He revealed that Coinbase has managed to cut back such unnecessary restrictions by 82%, thanks to recent enhancements in its machine learning infrastructure and internal processes.

"This issue has gone on for longer than is acceptable," Armstrong admitted, adding that ongoing improvements are underway. He urged affected users to contact Coinbase Support for help with any remaining issues.

Machine Learning Upgrades Drive Change

The progress has largely been driven by Dor Levi, a product team member who joined Coinbase just over two months ago with a mandate to address the account restriction crisis. Levi noted that Coinbase has made "significant investments" in AI and ML-based models to improve the accuracy of risk detection systems that flag accounts for suspicious activity.

“We’ve increased both the precision and recall of our systems,” Levi said. “This means fewer false positives and a smoother experience for genuine users.”

However, both Armstrong and Levi clarified that Coinbase will continue to restrict accounts when legally required—such as in compliance with court orders, financial sanctions, or regulatory obligations.

Source: Brian Armstrong

Read More: U.S. Government Urges Supreme Court to Reject Coinbase User’s Crypto Records Challenge

Users Still Report Long Lockouts

Despite the reported improvements, users continue to voice frustration. Some have shared stories of being locked out of their accounts for months—or even years—without a clear explanation or support.

One user on X claimed they had been locked out for over two years, while another stated they gave up on the platform after experiencing an eight-month freeze. The difficulty in reaching Coinbase’s customer service was a recurring theme among user complaints.

“It’s extremely hard to get in touch with a real person at Coinbase,” one user wrote. “You can wait forever just to get someone to look at your case.”

Fallout from a Massive Data Breach

Adding to user mistrust, Coinbase recently confirmed a security breach affecting over 70,000 customers. The breach—disclosed in mid-May but reportedly occurred in December—was linked to the bribery of offshore support agents who provided unauthorized access to sensitive personal data, including government-issued IDs and home addresses.

Some users even believe the breach may have played a role in crypto theft incidents, including the loss of Bitcoin and Ethereum. While Coinbase has not officially linked the scam cases to the breach, concerns about data handling and customer safety continue to mount.

Read More: Coinbase Faces Multiple Lawsuits Over Massive Customer Data Breach

A Platform Under Pressure—But Still a Market Leader

Despite these challenges, Coinbase remains one of the most dominant players in the cryptocurrency market. With over 100 million users worldwide and serving as the primary custodian for U.S.-listed spot Bitcoin ETFs, the company plays a critical role in the growing digital asset ecosystem.

Final Thoughts

While Coinbase’s strides toward reducing account freezes are encouraging, ongoing support improvements and stronger security protocols are essential to rebuilding user trust. As crypto adoption continues to grow, platforms like Coinbase will need to balance regulatory compliance, security, and user experience to remain competitive in a fast-evolving industry.