Coinbase cuts unnecessary account freezes by 82%

Coinbase CEO Brian Armstrong announced that the exchange has reduced unnecessary account freezes and restrictions by 82%, calling it an issue that has “lasted too long.” He said fixing this has become a top priority and updates will continue to roll out.

Dor Levi — a specialist from smIXL (acquired by Dune) — said he joined Coinbase specifically to tackle this problem. Measures include heavy investment in AI, infrastructure upgrades, and integrating source-of-funds checks and enhanced KYC directly into the app, allowing users to lift restrictions more easily.

However, complaints persist. Some users report account freezes simply for using a VPN or making small transfers, with entire balances being locked. Coinbase insists it will keep improving the process while maintaining safety and regulatory compliance.

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