The U.S. Securities and Exchange Commission (SEC) and the California Office of Company Oversight have introduced a pile of problems regarding San Francisco-centered cryptocurrency exchange Coinbase.
134 Web pages of Issues and Accusations
According to a report from Business Insider, the SEC has acquired 134 pages of problems from buyers about their transactions on Coinbase. The information, which were being received by Mashable through the Liberty of Data Act, outline a laundry list of problems indicating that the exchange is developing so quick that it just cannot retain ample buyer services.
Quite a few problems taken by the SEC and also by the California Office of Business Oversight accuse the San Francisco-centered exchange of keeping buyers money for its personal use when refusing to take care of transfer or reimbursement problems. While many others complain that their money is locked up in Coinbase’s program, present in a sort of limbo, and that the exchange has ceased to response communications.
One particular this kind of criticism taken directly from the SEC information is quoted by Mashables:
“I am joyful to acquire this as considerably as achievable, socially, politically, and economically, if I do not acquire what I am owed, or proceed to acquire no reaction from the business, each of which I’m absolutely sure are unavoidable. If I can aid to dismantle these frauds and secure any other people in America or abroad, I am a lot more than joyful to do so — just achieve out.”
Some of the problems are directly connected to a glitch in the Coinbase program, which resulted in some buyers owning their accounts drained in February 2018. This then led to angry posts on social media with some buyers threatening to exhibit up at the exchange’s headquarters with guns. Most, although, illustrate a pattern of lousy buyer services and even buyer neglect that buyers simply call systemic.
The 134 pages of problems and accusations directly contradict the impression Coinbase has sought to make for by itself as a trustworthy, safe exchange. In a room that has attracted a large amount of fraudsters, Coinbase complies with all know-your-buyer (KYC) and anti-money laundering (AML) regulations and assures buyers that it is regulated. It even sooner or later complied with an buy to hand about consumer facts to the Interior Income Service (IRS).
Coinbase Grew Too Quickly
A Coinbase Spokesperson replied to the reports by stating the business is earning sincere initiatives to strengthen their buyer support.
As quoted by Mashable: “Over the last couple of months we have: elevated our support staff by about 150 %,” and “[decreased] our regular time to to start with reaction to <10 hours for 95 percent of incoming volume today. As a result, we are able to resolve issues faster and have decreased the backlog by 95 percent. We now have over 600 support agents working on our queues across three different locations and we offer phone support 24 hours a day, seven days a week.”
Founded in 2012 by Brian Armstrong, Coinbase experienced massive growth during the cryptocurrency boom of 2017 forcing the company to double the number of its employees from 250 to 500 in a matter of months. Though officially worth $1.6 billion the exchange has been valued by its founder at closer to $8 billion during recent acquisition deals.
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