One of the world’s leading cryptocurrency exchanges, Coinbase, is making big strides in addressing a long-standing problem that has frustrated users for years: unexpected and prolonged account freezes.
Co-founder and CEO Brian Armstrong admits that the issue has gone on “longer than is acceptable,” but he and the rest of the company are determined to make it a top operational priority going forward—account freezes, unfreezes, and the lack thereof being a significant operational engagement with customers—and they are already seeing significant improvements.
In a public statement disseminated through social media, Armstrong acknowledged the gravity of the issue and complimented the internal teams charged with fixing it. He especially recognized Dorvon Levi, a Coinbase exec who has taken the lead on this issue, and noted that the company has already reversed a remarkable 82 percent of the problem account freezes that had been affecting customers. More fixes are said to be in the works as Coinbase continues to revamp its support and risk management systems.
Long-Standing Frustrations, Now Being Taken Seriously
For several years, Coinbase users have vented their frustrations on forums and social media over what they see as arbitrary restrictions placed on their accounts. These users have, in some cases, found themselves locked out of their funds for seemingly extended periods of time. While some of these account restrictions may be due to the exchange’s need to comply with a veritable alphabet soup of financial regulations or some sort of suspicious activity on the part of the user, a whole lot more seem to be the result of either the company’s internal review process, some technical issue on their end, or just plain old fraud detection systems that appear to be way too cautious.
One of the most direct acknowledgments from Coinbase leadership about the scale of the issue came recently from Armstrong himself. He didn’t shy away from the fact that it had become a recurring pain point for users; in fact, he nearly owns up for allowing it to persist far too long.
There are several fundamental reasons why it got so bad in the first place, Armstrong wrote, but what’s more important is we made it a priority to fix it. His message signifies an even more user-focused shift in Coinbase’s operational approach, especially in terms of customer service and trust.
Internal Overhaul and a Renewed Focus on Customer Experience
Progress has been made because Levi and his team have taken it upon themselves to internally lead the many reforms necessary to fix the systems that previously caused these problems. They could have simply reformed the most problematic areas of the systems causing these automations to not work as intended, but they have chosen instead to reform the entire system and fix its many parts. They definitely did not have to do that. In fact, very few teams inside of Meta have the kind of resources that Levi’s team has been afforded. So, from both a human and a financial perspective, these were dedicated efforts.
A substantial change, which is an 82% reduction in account freezes, has occurred, especially for a platform the size of Coinbase, where even a small percentage of user issues can translate into thousands of affected customers. While the company has not shared exact numbers, we expect that the decline will noticeably reduce the volume of support tickets and improve overall user satisfaction.
The well-known public figure of Armstrong has brought attention to this important issue and shed light on the ongoing work to resolve it. He has used his high visibility to spark serious conversations in the crypto community and beyond. Additionally, it’s a pretty big deal for the industry, too: In an industry where it feels like customer support always lags behind innovation and growth, Coinbase is—really, truly—trying to put the customer first.
Next Steps and a Call to Affected Users
Although the advancement has been considerable, Armstrong stressed that the undertaking is still a work in progress. Coinbase intends to keep perfecting its systems, listening to users, and implementing further enhancements in the months to come. The company has pledged to keep everyone in the loop when it comes to any future developments.
In the meantime, users experiencing persistent problems—especially those whose accounts are limited but not for reasons related to sanctions or illegal activity—are urged to take action. Armstrong has directed these users to contact @CoinbaseSupport via direct message to help prioritize their cases. This more proactive and personalized approach is meant to resolve these persistent issues at last and demonstrate a renewed commitment to user experience.
The more general message is plain: Coinbase is taking note and working hard to reestablish trust where it might not have been there before. While I’m sure they’ve had their challenges, the company has dramatically reduced the instances where they freeze people’s accounts. To me, that’s a strong sign that they’re evolving not just as a crypto exchange but also as a user-centric financial platform. In a still-very-young industry, that puts Coinbase among the leaders.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
Follow us on Twitter @themerklehash to stay updated with the latest Crypto, NFT, AI, Cybersecurity, and Metaverse news!
The post Coinbase Tackles Longstanding Account Freezing Issues, Reduces Cases by 82% appeared first on The Merkle News.