Former Coinbase Employee Griffin McShane recently posted on his X account regarding the status of his Coinbase account which has been disabled for the next two months. McShane’s frustration was evident in his post. He directed the post to Coinbase’s CEO Brian Armstrong, saying that the has been unable to withdraw funds or access his account for two months now and this has been impacting his personal life.
McShane described that the account that has been blocked now, was being used for encashing his payrolls during his tenure at Coinbase during which there had been no issues with the account. “Please explain to me how blocking access to my account for two months is protecting me” he wrote, adding that the exchange’s support team has not gotten back to him regarding the raised issue. He even asked the team to update their systems, as it causes a great loss to the users in such situations.
High Profile Voices Join the Criticism
A well-known crypto investor on X Mike Dudas (mdudas) responded to the tweet shared by McShane. The investor reported that he had been facing same issues with the exchange and pointed out that previously he faced these issue twice a week. At first instance the problem was solved after he shared a tweet about the incident. “The fact it’s so rampant is insane,” Dudas remarked. He also pointed out that there are flaws in the exchange’s risk management systems.
These tweets caught eye of a well-known blockchain investigator ZachXBT, who highlighted larger systematic errors with the exchange.
Systemic Failures and Accountability Issues
According to ZachXBT, Coinbase has bigger problems than just locking people out of their accounts. He says that every year, Coinbase users lose over $150 million to scams. This happens when scammers trick users into giving away their account information.
Lack of Accountability
ZachXBT is upset over how Coinbase handles these situations. He says the company does not do enough to help victims or catch the scammers. Instead, the exchange blames its users or says its not their problem. The comments section of the post shared by McShane was filled with how the support system does not respond back to such queries which implies lack of accountability by the exchange.
What’s Going Wrong?
ZachXBT thinks part of the problem is that Coinbase relies too much on technology and not enough on human help. He also says that US laws are not enough to protect people’s privacy, making it easier for scammers to get away with it.
What Needs to Change?
ZachXBT wants Coinbase to take responsibility for helping its users and keep them safe. He also wants the company to work with lawmakers to create stronger stronger privacy laws. By making these changes, Coinbase can regain user’s trust and provide better protection.
Also Read: Sen. Cynthia Lummis Presses FDIC for Crypto Documentation
