Key Takeaways:
- Coinbase reduced unnecessary account freezes by 82% after prioritizing the issue, with ongoing improvements in place.
- Enhancements in machine learning and infrastructure are credited for the progress, though the user experience is still being refined.
- The platform is also boosting security following a breach involving bribed customer service agents and exposed user data.
Coinbase has made major progress in resolving its long-standing account freezing issue, cutting unnecessary freezes by 82%.
CEO Brian Armstrong acknowledged in a June 6 post that the problem had persisted “longer than acceptable” but is now a top company priority.
Account freezing has been a major issue at Coinbase for longer than is acceptable. I could list a bunch of the underlying reasons why it got so bad in the first place, but what's more important is that we've made it a priority to fix, and we have been making good progress. Shout… https://t.co/Emrq6KQhpD
— Brian Armstrong (@brian_armstrong) June 6, 2025
He credited Dor Levi, a product team member who joined in April, for leading efforts to fix the issue.
Levi cited significant upgrades to Coinbase’s machine learning models and infrastructure, which led to fewer false account restrictions and improved accuracy.
I joined @coinbase 9 weeks ago with a vital goal: fixing unnecessary account restrictions.
— Dor (@dorvonlevi) June 6, 2025
If you're on CT, you know how significant this issue has been for users. I myself am a Coinbase user and our restriction experience is not meeting my own bar.
The goal is clear: Account… pic.twitter.com/zvGuM3QSZi
Despite the progress, Levi admitted that the user experience still falls short of his expectations.
Armstrong urged users affected by non-sanctioned freezes to contact Coinbase Support directly.
The company stressed that account restrictions will still apply when required by legal obligations, including court orders and government sanctions.
This effort follows a recent security breach, where customer service agents were bribed to leak sensitive data – including ID photos and home addresses – affecting around 70,000 users in an incident from December, revealed only in May.
Coinbase, with over 100 million users, remains a key player and custodian for spot Bitcoin ETFs.
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Efe Bravo, a seasoned journalist, delivers compelling insights into the cryptocurrency and blockchain industry.
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