A common issue when it comes to centralised exchanges, coinbase or other exchanges have policies that they can freeze your assets and block your account anytime if you don't proof the ownership of your account or if you fail to convince them that you are the rightful owner of that particular account.
You can find many cases on the internet about account freezes of centralised exchanges.
Topic: What could make an exchange to seize users assets - page 4. (Read 717 times)
Have there ever been any cases of users' assets being frozen and never released to them?
Yes and there are many reasons that could warrant them doing that, but the first mistake comes from the user by leaving a whole numbers of decentralized exchanges for centralized exchanges, so if you're using a centralized exchange, know it that you're one of the anticipating aspirant for this kind of experience with ceisure, while at the registration point you provided them with KYC information and they use it to track you, the AML agencies comes after you through them as well and track any suspicious move in transactions you made, they got attacked and their system get hacked all your asset gone as well.
Coinbase exchange was launched in 2012 right? Have there ever been any cases of users' assets being frozen and never released to them? I know someone living in the united states, she said that Coinbase seized her crypto in 2020 within that COVID-19 period and to date, the assets were never released back to her. I respect coinbase so much and I am curious why such a thing would happen.
Actually account freeze is the number issue of coinbase before they become this huge exchange that’s is now regulated by the US. The only reason that coinbase will freeze someone account is the potential violation of there T&C. It includes bit not limited to suspicious activity on your account. I believe most of the CEX has this kind of condition for their exchange.
I believe there’s a lot of issue like this against coinbase way back 2017 when the first ICO boom in crypto market because there’s a lot of investors depositing on coinbase using fiat to invest on startup projects.
Coinbase exchange was launched in 2012 right? Have there ever been any cases of users' assets being frozen and never released to them? I know someone living in the united states, she said that Coinbase seized her crypto in 2020 within that COVID-19 period and to date, the assets were never released back to her. I respect coinbase so much and I am curious why such a thing would happen.
Cryptocurrency exchanges are obliged to adhere to regulatory requirements that vary based on their jurisdiction. These requirements may encompass tasks such as verifying user identities, monitoring transactions for suspicious activity, and reporting specific transactions to government entities. If a user fails to conform to these obligations or if their transactions are identified as suspicious, the exchange may be bound by law to temporarily freeze their assets until the matter is appropriately resolved. 6.10. Suspension, Termination, and Cancellation. Coinbase may suspend, restrict, or terminate your access to any or all of the Coinbase Services, and/or deactivate or cancel your Coinbase Account(s), with immediate effect for any reason at its sole discretion and is under no obligation to disclose the details of its decision to take such action with you. You acknowledge that Coinbase's decision to take certain actions, including limiting access to, suspending, or closing your account for any reason in our sole discretion, may be based on confidential criteria that are essential to Coinbase's risk management and security protocols. You agree that Coinbase is under no obligation to disclose the details of its risk management and security procedures to you.
Yeah, In my previous post, I also suggested OP to read this;
[3] Coinbase User Agreement Read from 6.1 to 6.3 SUSPENSION, TERMINATION, AND CANCELLATION.
At any time, for any reason, and they won't even tell you why, let alone let you appeal against it.
Would you use such a service If you knew they have the right to do such things with your account and funds? I don't understand why OP respects Coinbase so much, but this is the sickest user agreement I have ever read. To be honest, I didn't read their user agreement before today. But I wanted to dig into the reason, and I was shocked.
I believe over 95% of Coinbase users don't know about this. Almost no one reads the user agreement when they sign up. If anyone does, I don't think they will end up signing up on Coinbase after they find what coinbase can do. Almost nobody knows what's hiding in their user agreement page. I Believe it needs a particular thread with awareness, and people should know about this.
There are a lot rules you can find on Coinbase where they stated you need to follow all of their terms of services otherwise they will ask you to submit KYC and then they might seize your funds or terminated your account. After all it's depends on the Coinbase to punish you and you have no way to complaint since they will always right. Think twice before using any centralized exchange even though you're only use it to buy and sell your coins, they might not allow you to withdraw and you need to handle this problem.
Coinbase exchange was launched in 2012 right? Have there ever been any cases of users' assets being frozen and never released to them?
Many of such cases. I'm sure if you count the unreported isolated cases it would reveal a much higher number.I respect coinbase so much and I am curious why such a thing would happen.
I have no idea why you would respect coinbase. It's an anti privacy company which has been reported to be sharing user details to government authorities, or selling them in some cases, among so many other ills.Why they can seize someone's funds is simply because they can. You give them the authority to do that when you sign up and agree to their terms.
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While everything you have said is true, Coinbase's policies are far more wide reaching than that. They essentially give Coinbase the ability to close your account and seize your coins for literally any reason at all, and there is nothing you can do about it. For example:6.10. Suspension, Termination, and Cancellation. Coinbase may suspend, restrict, or terminate your access to any or all of the Coinbase Services, and/or deactivate or cancel your Coinbase Account(s), with immediate effect for any reason at its sole discretion and is under no obligation to disclose the details of its decision to take such action with you. You acknowledge that Coinbase's decision to take certain actions, including limiting access to, suspending, or closing your account for any reason in our sole discretion, may be based on confidential criteria that are essential to Coinbase's risk management and security protocols. You agree that Coinbase is under no obligation to disclose the details of its risk management and security procedures to you.
At any time, for any reason, and they won't even tell you why, let alone let you appeal against it.
And as we have seen from several recent court cases and bankruptcy proceedings, the instant coins are deposited to a centralized exchange, then legally speaking those coins belong to the exchange and you have absolutely no claim over them. There are thousands of such users who have had various centralized exchanges simply seize their coins with no explanation ever given.
Coinbase exchange was launched in 2012 right? Have there ever been any cases of users' assets being frozen and never released to them? I know someone living in the united states, she said that Coinbase seized her crypto in 2020 within that COVID-19 period and to date, the assets were never released back to her. I respect coinbase so much and I am curious why such a thing would happen.
Yes. If you search for such result on the internet, You will find plenty of users' account was frozen. Coinbase has a big list of reasons that can cause freezing your funds. Most probably, your friend deposited Crypto in Online casinos or paid for adult content and services. Or maybe invested in pyramid Schemes. Most Users do not read the User agreement before they sign up.
Coinbase Prohibits Plenty of Businesses like Investment and Credit Services, Restricted Financial Services, Intellectual Property or Proprietary Rights Infringement, Counterfeit or Unauthorized Goods, Regulated Products and Services, Drugs and Drug Paraphernalia, Pseudo-Pharmaceuticals, Substances designed to mimic illegal drugs, Adult Content and Services, Multi-level Marketing, Unfair, predatory or deceptive practices, High-risk businesses.
Coinbase itself mentioned why they could freeze your funds:
In extremely rare circumstances, and only where required by law or authorized by the Coinbase User Agreement, Coinbase may block or "freeze" customer funds on our platform. For example, we will take this action when:
We are required to comply with an order from a court or other authority that has jurisdiction over Coinbase which compels us to restrict access to funds.
We are required by law to freeze or block assets in compliance with a sanctions program, including, but not limited to sanctions programs administered by the U.S. Office of Foreign Assets Control (OFAC).
We are required to comply with an order from a court or other authority that has jurisdiction over Coinbase which compels us to restrict access to funds.
We are required by law to freeze or block assets in compliance with a sanctions program, including, but not limited to sanctions programs administered by the U.S. Office of Foreign Assets Control (OFAC).
For more detailed information, I recommend you read this:
[1] Does Coinbase freeze accounts?
[2] Coinbase Prohibited & Conditional Use Policy
[3] Coinbase User Agreement Read from 6.1 to 6.3 SUSPENSION, TERMINATION, AND CANCELLATION.
Coinbase exchange was launched in 2012 right? Have there ever been any cases of users' assets being frozen and never released to them? I know someone living in the united states, she said that Coinbase seized her crypto in 2020 within that COVID-19 period and to date, the assets were never released back to her. I respect coinbase so much and I am curious why such a thing would happen.
If I were to guess, the most common issue is lack of proof-of-personal identification. Coinbase is a public American company that's obviously highly regulated, hence requirements will be greatly extreme.
But since you know the person, maybe ask her what what Coinbase's reason for seizing her funds?
Coinbase exchange was launched in 2012 right? Have there ever been any cases of users' assets being frozen and never released to them? I know someone living in the united states, she said that Coinbase seized her crypto in 2020 within that COVID-19 period and to date, the assets were never released back to her. I respect coinbase so much and I am curious why such a thing would happen.
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