Coinbase Reduces Account Freezes by 82%: What It Means for Crypto Traders

<p>Coinbase CEO Brian Armstrong said the crypto exchange has reduced unnecessary user account freezing by 82%, after identifying it as a “major issue.”</p><p>In a June 6 X post, Armstrong acknowledged that account freezing has been a problem “for longer than is acceptable,” and that it has become a top priority for his firm to improve.</p><p>“The issue has been reduced by 82% so far, with more improvements coming. We’ll keep you updated as further improvements roll out,” Armstrong said, before asking all customers with frozen accounts to contact Coinbase Support.</p><p>Coinbase users have expressed frustration over account restrictions for years, reporting sudden freezes lasting several months or longer, prompting some to abandon the platform.&nbsp;</p><p>Customer confidence in Coinbase was also recently shaken by a mass data breach that exposed the details of more than 70,000 customer accounts.</p><h2>Coinbase says fewer restrictions due to improved models</h2><p>Armstrong credited the progress to Dor Levi, a member of Coinbase’s product team, who came on board in April with the primary goal of fixing the account restrictions.</p><figure><img src=’https://ipowercrypto.com/wp-content/uploads/2025/06/01975228-f41b-7c36-8f02-593c22bac947-1.png’ title=’Source: Brian Armstrong’/></figure><p>In a post of his own, Levi said much of the progress has come from making “significant investments” in Coinbase’s machine learning models and infrastructure.</p><blockquote data-ct-non-breakable=’undefined’>“We’ve improved the precision and recall of all our models, and are seeing fewer restrictions/freezes as a result.”</blockquote><p>Coinbase will continue to implement account restrictions imposed by court orders and sanctions to remain compliant with the law, Armstrong and Levi noted.</p><p>Despite the progress, much work remains, said Levi, who admitted that as a Coinbase user himself, the experience with account restrictions still doesn’t meet his “own bar.”</p><h2>Coinbase users say they’ve been locked out for several months</h2><p>In response to Armstrong’s post, one X user said they have been completely locked out of their Coinbase account for over two years, while another said they abandoned the platform after enduring an eight-month freeze.</p><p>Another X user attributed the lengthy account freezes to Coinbase’s customer support team.</p><p>“At Coinbase, it is extremely hard to speak to a live customer service person,” they said, adding that it “can take forever to track someone down.”</p><p>Coinbase is also planning to strengthen its security measures after illicit actors bribed some of its overseas customer service agents to access government-issued ID photos and home addresses </a>of around 70,000 Coinbase customers last December. The incident was only disclosed in mid-May.</p><p>One X user even claimed that a family friend of theirs lost Bitcoin (BTC) and Ether (ETH) in a scam that they believe was linked to the recent Coinbase data breach.</p><p>Coinbase remains one of the world’s largest crypto exchanges, with over 100 million users and is the largest custodian of the spot Bitcoin exchange-traded funds.</p>