Coinbase cuts unnecessary account freezes by 82% through improved ML models, self-service flows, and system-wide infrastructure upgrades.
New executive Dor Levi leads Coinbase’s restriction overhaul, boosting user experience while ensuring legal and compliance obligations.
Coinbase and BiT Global end legal battle over wBTC delisting, dismissing the lawsuit with prejudice and covering their own legal costs.
Coinbase has reduced unnecessary account freezes, according to CEO Brian Armstrong. In a recent update, he confirmed that the crypto exchange has cut account restrictions by 82%. This development follows widespread user concerns over sudden, unexplained restrictions. Armstrong acknowledged the problem had persisted longer than acceptable. However, he emphasized that the company has now prioritized solving it.
Dor Levi, Coinbase’s new executive leading the initiative, shared further technical insights. He joined the company nine weeks ago to tackle this issue head-on. Levi noted that many freezes stemmed from outdated internal processes. Consequently, his team invested heavily in improving infrastructure, machine learning models, and user workflows.
Significant Product and System Upgrades
Besides cutting restrictions, Coinbase has rolled out more efficient self-service options. These let users resolve issues like source-of-funds checks within the app. Hence, customers now avoid long wait times and support backlogs. Levi highlighted that the new system balances user experience with legal compliance. The improved precision of Coinbase’s models means fewer false positives, which directly reduces unnecessary locks.
Moreover, Coinbase has implemented new internal guardrails. These ensure sustained focus on minimizing disruptions to user access. Consequently, the team continues to test and deploy changes that enhance model accuracy and process automation. Levi confirmed the company remains committed to making freezes rare, and only in necessary scenarios like scam prevention or court orders.
Coinbase and BiT Global Settle wBTC Lawsuit
In a parallel development, Coinbase resolved a legal dispute with BiT Global. The conflict stemmed from Coinbase's delisting of BiT’s wrapped bitcoin (wBTC) token. The exchange had flagged “unacceptable risk” tied to Justin Sun’s involvement in the token project.
BiT Global sued Coinbase last year in California. However, both parties have now settled the case and agreed to dismiss it with prejudice. This means BiT Global cannot refile the lawsuit in the future. Additionally, both companies will cover their own legal costs. The settlement ends one of Coinbase’s most contentious recent legal battles. Moreover, it clears the air regarding Coinbase’s risk approach toward token listings involving controversial figures.
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