Coinbase Just Fixed One of Its Major Issues as User Trust Eroded
The post Coinbase Just Fixed One of Its Major Issues as User Trust Eroded appeared on BitcoinEthereumNews.com.
Coinbase, the largest US-based exchange, is taking steps to rebuild user trust amid one of the platform’s most contentious issues, account freezing. Users decry unnecessary account freezing and unsuccessful recovery efforts despite submitting all required KYC (Know Your Customer) documentation. Did Coinbase Finally Fix Its Account Freezing Issue? Coinbase CEO Brian Armstrong announced a significant breakthrough in one of the platform’s most contentious issues: unnecessary account freezes. According to Armstrong, the company has reduced account restrictions by 82%. This move could reshape how both retail users and businesses perceive the exchange. Account freezing has been a major issue at Coinbase for longer than is acceptable. I could list a bunch of the underlying reasons why it got so bad in the first place, but what’s more important is that we’ve made it a priority to fix, and we have been making good progress. Shout… https://t.co/Emrq6KQhpD — Brian Armstrong (@brian_armstrong) June 6, 2025 The Coinbase exchange executive credited the achievement to Dor Levi, the platform’s new hire tasked with overhauling the restrictions system. Based on comments on X (Twitter), account freezes have long been a pain point among Coinbase users. Some cite the need for lengthy and opaque verification processes. Complaints have ranged from weeks-long lockouts to repeated KYC requests, even after prior submissions. “My account has been frozen for weeks despite submitting all required KYC documentation… This is causing real financial harm for many once loyal users,” wrote Hunter, senior ecosystem development/investment lead at Tron. Dor Levi, who joined Coinbase nine weeks ago, outlined his team’s reforms in detail. He explained that improvements in machine learning (ML) models, enhanced infrastructure, and the addition of in-app self-service tools have allowed Coinbase to slash the frequency of freezes without compromising compliance. “Account freezes should be rare, limited to situations that warrant them,…
