Coinbase, a leading cryptocurrency exchange, has found itself embroiled in controversy following reports of widespread account restrictions and criticism over its stance on VPN usage.
Over the weekend, numerous Coinbase users took to X (formerly Twitter) to express their frustration over sudden account limitations. In response, Coinbase’s official support account urged users to “bear with us and don’t believe everything you see on Twitter.”
An update on this retarded take: yesterday skiddies (again) decided to fake Coinbase support and drained multiple accounts. But sure, disallowing VPN will save you. CB is fucking clown show at this moment. https://t.co/3z23Ew2yrV pic.twitter.com/CvsFSv6aib
— sudo rm -rf –no-preserve-root / (@pcaversaccio) December 8, 2024
The recent surge in account restrictions comes amid a backdrop of increased security threats targeting cryptocurrency users. According to security researcher @pcaversaccio, multiple accounts were compromised on Saturday night due to phishing attacks disguised as Coinbase support.
Coinbase attributed the heightened security measures to a significant increase in fraudulent activity, particularly following the recent US elections. The exchange claimed its fraud prevention systems have successfully thwarted millions of dollars in potential losses.
However, the company’s stance on VPN usage has drawn criticism from both security experts and users. Coinbase product director Scott Shapiro explained that the platform’s risk models view VPN usage as a potential red flag, even for legitimate users. This approach has been met with concerns that it could hinder user privacy and security.
PSA: Don't use a VPN to access Coinbase.
— Scott Shapiro 🛡 shapiro.eth (@scottshapiro) December 2, 2024
Attackers always use VPN's, so our risk models take that as a negative sign even if you're legitimately using your own account.
Security experts like Taylor Monahan, principal security researcher at Metamask, have also criticized Coinbase’s lack of timely support, particularly during weekends when fraudulent activity tends to spike.
While Coinbase has acknowledged the increased wait times and account restrictions, it maintains that these measures are necessary to protect user funds. As the cryptocurrency industry continues to evolve, the balance between security and user experience remains a delicate one.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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