Account Freeze Fix at Coinbase Slashes Incidents by 82%

Coinbase CEO Brian Armstrong announced that the company has cut unnecessary user account freezes by 82%, calling the issue a “major” and long-standing concern.

In a 6 June post on X (formerly known as Twitter), Armstrong admitted the problem had persisted “longer than is acceptable” and confirmed that resolving it has become a top priority.

For years, Coinbase users have reported prolonged account restrictions—sometimes lasting months—causing frustration and, in some cases, prompting users to leave the platform entirely.

Customer trust in Coinbase was further tested recently after a major data breach compromised the personal information of over 70,000 users.

Armstrong credited the recent turnaround to Dor Levi, a product team lead who joined Coinbase nine weeks ago specifically to address the issue.

Levi noted that the progress stems from “significant investments” in the platform’s machine learning models and technical infrastructure.

Despite the gains, Levi acknowledged there is still work to be done, adding that, as a Coinbase user himself, the current experience with account restrictions does not yet meet his own bar.

Both Armstrong and Levi emphasized that while the company is reducing false positives, it will continue enforcing restrictions required by court orders or international sanctions to ensure regulatory compliance.

Coinbase Under Fire for Months-Long User Lockouts

In response to Armstrong’s post, several users on X voiced lingering frustrations.

One reported being locked out of their Coinbase account for over two years, while another said they left the platform after an eight-month freeze.

Some users pointed to Coinbase’s customer support as a key reason for the prolonged access issues.

Security concerns have also intensified following revelations that, in December, bad actors bribed overseas Coinbase support staff to gain access to sensitive customer data—including government-issued IDs and home addresses of roughly 70,000 users.

The breach was only publicly disclosed in mid-May.

One user claimed a family friend lost Bitcoin and Ether in a scam they believe was linked to that incident.

Fresh Start for Exchange Faces Test of Reliability

Can Coinbase regain trader trust?

The 82% reduction in unnecessary account freezes is a significant step forward—but it is only the beginning.

In crypto, trust is fragile: easily lost, and slow to rebuild.

For retail users who faced months-long lockouts, one announcement will not undo years of frustration.

What they need now is proof—through sustained improvements, greater transparency, and a more responsive support system.

With over 100 million users and its role as the largest custodian of spot Bitcoin ETFs, Coinbase has a lot riding on its ability to deliver.

The company’s next moves will be critical—not just for restoring confidence among everyday users, but for demonstrating to regulators and institutions that crypto platforms can offer secure, reliable infrastructure at scale.