Coinbase Allegedly Pulls A 99% Rug On User Coverage, From $1M To $10K

Coinbase (NASDAQ: COIN) has reportedly slashed the “unauthorized-transfer” reimbursement that anchors its Coinbase One subscription, chopping the headline cap to just $10,000 from the long-advertised $1 million.

One of the subscribers, writing on Reddit, said customer support offered “only [to] refund me 1 month of the 12 I’ve paid for, even though they changed insurance protection without any notification.” The user is now urging fellow customers to file complaints with the Federal Trade Commission, state attorneys-general and the Better Business Bureau, arguing the move amounts to “blatantly bait & switching loyal customers.”

The timing compounds Coinbase’s reputational risk. On June 4, leaked internal correspondence revealed the exchange knew months earlier about a support-staff breach that exposed data on roughly 70,000 customers yet delayed its SEC disclosure until mid-May. The same episode featured teenage hackers joking about funding CEO Brian Armstrong’s “hair transplant” with blackmail proceeds.

Analytically, the downgrade shifts far more risk back to users while shaving an undetermined—but certainly material—liability off Coinbase’s own balance sheet. That may appeal to investors eyeing cost containment ahead of a potential windfall from partner Circle’s supersized IPO, but it collides head-on with regulators already probing the firm’s consumer-protection record.

Coinbase has logged over 8,000 complaints with the Consumer Financial Protection Bureau and is battling a lawsuit from the Oregon attorney general.


Information for this briefing was found via CoinGeek and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

Baselode Energy To Acquire Forum Energy: The Merger Of Equals Deal

TriStar Gold: The Revised Castelo de Sonhos Prefeasibility Study

Gold is Up 30%, But the Real Bull Market is Only Starting Now! | Adrian Day

Recommended

ESGold To Expand Mine Building At Montauban In Advance Of Gold & Silver Production

Goliath Resources Expands 2025 Drill Program To 60,000 Metres

Related News

Coinbase: Is The Current Price Weakness A Warning Sign?

One of the biggest red flags for an investor is a stock’s refusal to participate...

Sunday, January 8, 2023, 11:31:00 AM

Coinbase: Arbitration Case Against Firm Could Open The Door To Substantial Financial Exposure

A seemingly garden variety arbitration demand brought against Coinbase Global, Inc. (NASDAQ: COIN) by about...

Sunday, October 16, 2022, 09:00:00 AM

DOJ Selects Coinbase to Handle Forfeited Crypto Assets in 5-Year Deal

The US Marshals Service (USMS), a division of the Department of Justice, has selected Coinbase...

Tuesday, July 2, 2024, 08:03:50 AM

Coinbase Rallies Off Back Of XRP Decision By Courts

On July 13, in a ruling befitting the unpredictable and unquantifiable world of cryptocurrency, Judge...

Saturday, July 15, 2023, 01:25:00 PM

Coinbase Estimates Q1 Revenue Surged to $1.8 Billion Ahead of Nasdaq Listing

Ahead of its Nasdaq debut next week, cryptocurrency exchange Coinbase revealed its revenue for the...

Wednesday, April 7, 2021, 11:41:00 AM