Types of Harm at Coinbase

The majority of Coinbase customers who suffer from account hacks are victims of broader identity theft campaigns. Cryptocurrency investors are particularly vulnerable to such schemes due to the relatively lax security measures on cryptocurrency exchange platforms compared to traditional financial institutions. These platforms often meet only the minimum required security measures, which do not sufficiently protect against or prevent the misappropriation of customer funds.

How Coinbase Account Takeovers Happen

Cybercriminals target potential victims through social media and cryptocurrency forums, gathering information to facilitate attacks. Once they have access to an individual’s email—a common username for Coinbase—they can manipulate password recovery options to gain account access. This often involves intercepting or redirecting two-factor authentication codes through methods like SIM swapping or phishing to breach accounts undetected.

Attackers quickly transfer out assets from Coinbase accounts, leaving victims devastated both financially and emotionally. The sophisticated nature of these crimes, often backed by state-sponsored actors from regions with lax regulatory frameworks, makes them particularly challenging to combat.

Phishing Scams as a Method of Fraud

Phishing attacks are a prevalent strategy used by scammers pretending to be Coinbase security personnel. They contact victims, claiming an urgent need to secure the victims’ Coinbase accounts due to fictitious threats. These attackers are often well-informed about the victims’ account details, making their deception more convincing. They manipulate victims into voluntarily providing access by mimicking official communication from Coinbase and exploiting the victims’ trust.

To understand the gravity of cryptocurrency phishing scams, look no further than these words from John Reed Stark, a former U.S. Securities and Exchange Division Chief for the SEC’s Office of Internet Enforcement:

Take it from me, a former SEC Enforcement lawyer of 18+ years: Fall for a phishing scam in your crypto account? No reversal of transaction; no U.S. regulatory oversight; no compliance director to call; no nothing. Sadly, you are on your own. All alone, devastated  and helpless.

While Mr. Stark accurately captures the severity of some cryptocurrency phishing scams, he is wrong when he says victims are alone.  Those victims have Silver Miller on their side.

Why Choose Silver Miller for Coinbase Identity Theft Cases?

At Silver Miller, we understand the profound impact of crypto fraud and are dedicated to holding platforms accountable for their security shortcomings. Our firm provides aggressive legal advocacy to ensure that victims receive the justice and compensation they deserve. If you have suffered from an account takeover or related issues on Coinbase, contact us to explore your legal options and begin the recovery process.

Contact Silver Miller for Expert Legal Assistance

If you or someone you know has been impacted by security issues with a Coinbase account or wallet, reach out to Silver Miller for a comprehensive review of your case. Our team is committed to guiding you through the complexities of cryptocurrency fraud and achieving a favorable outcome.

The post Understanding Coinbase Account Takeover Fraud: Risks and Protections appeared first on SilverMillerLaw.com.

Understanding Coinbase’s Security Landscape

Since its establishment in 2012, Coinbase has grown into one of the leading cryptocurrency exchanges globally. However, its journey has been marred by multiple reported security incidents, underscoring persistent vulnerabilities that have impacted thousands of users.

Examples of Major Hacking Events at Coinbase

• March 2021 and May 2021:  Over 6,000 Coinbase customers had their accounts compromised in the spring of 2021. Unauthorized parties siphoned funds and accessed sensitive personal data, exposing a critical lapse in the platform’s SMS-based two-factor authentication system.
• February 2023: Another breach targeted Coinbase employees via an SMS phishing campaign orchestrated by the hacker group known as “0ktapus.” This breach compromised Coinbase’s internal systems and highlighted the sophisticated nature of attacks that the platform faces.

Regulatory Actions and Coinbase’s Compliance Challenges

Over the years, Coinbase has faced several fines and regulatory actions due to issues surrounding security and regulatory compliance:

• 2023 New York Settlement: Coinbase agreed to a $100 million settlement with New York regulators, addressing alleged failures in its anti-money laundering and Know Your Customer protocols.
• 2023 Dutch Central Bank Fine: Coinbase incurred a $3.6 million fine for failing to register its services with applicable governmental authorities, highlighting non-compliance with local regulations.
• 2023 New Jersey Cease and Desist: The New Jersey Attorney General issued a cease and desist order accompanied by a $5 million penalty upon Coinbase for purportedly engaging in the sale of unregistered securities.

What These Incidents Mean for Coinbase Users

The repeated issues concerning security and regulatory compliance complaints at Coinbase raise significant concerns about the platform’s ability to safeguard user assets and personal information. For those affected by fraud or hacking at Coinbase, these incidents underscore the importance of robust legal representation in seeking restitution for assets stolen from Coinbase accounts and wallets.

As cryptocurrency tracing sleuth ZachXBT has posted on his widely-read social media accounts:

Coinbase needs to urgently make changes as more and more users are being scammed for tens of millions every month. 

Other major exchanges do not have similar panels created by scammers for fraud.  

*  *  *

Coinbase is in a position where they have the power to make these changes and set a good example but they have chosen to do little to nothing.

Contact Silver Miller for Experienced Legal Guidance

If you’ve experienced a hacked event or are concerned about identity theft related to your Coinbase account or wallet, contacting a knowledgeable lawyer can provide you with the necessary legal support. Silver Miller is committed to helping you understand your rights and exploring viable options for recovering your losses.

For a comprehensive review of your case and to learn more about your potential legal claims, contact Silver Miller. We are here to help you navigate through these challenging issues and secure the justice you deserve in the wake of fraud and security failures.

The post History of Coinbase Hacking Incidents: A Detailed Overview appeared first on SilverMillerLaw.com.

As a leading cryptocurrency litigation law firm, Silver Miller has successfully represented investors and cryptocurrency users in disputes against major exchanges, including Coinbase. If your account is restricted, funds are locked, or you believe your rights have been violated, our team is ready to investigate your claim and take appropriate action on your behalf.

Common Reasons for Coinbase Account Restrictions

Coinbase enforces account restrictions for various reasons, often citing security measures, regulatory compliance, or suspicious activity. However, these restrictions can sometimes be misapplied, leaving users without access to their assets for extended periods without proper justification. Common reasons for account restrictions include:

• Increased Security Measures – In response to rising fraud and cyber threats, Coinbase continuously updates its fraud prevention systems. However, these automated systems can sometimes mistakenly flag legitimate accounts, leading to unnecessary restrictions.
• Regulatory Compliance Issues – As a regulated exchange, Coinbase must comply with financial laws that require stringent verification procedures. Failure to update your identity verification or meet compliance requirements could result in account limitations.
• High-Volume Trading or Unusual Activity – Sudden large transactions or frequent trading may trigger security reviews that restrict access until Coinbase verifies the account activity.
• Disputed Transactions or Chargebacks – If you’ve reported fraudulent activity or engaged in disputes over transactions, your account may be temporarily or permanently restricted.

As noted cryptocurrency scam investigator ZachXBT has noted: 

“The issue with ‘good customer support’ is that it means that support may not be strict enough[,] which would make the Coinbase team susceptible to scams. * * * Coinbase needs to fix why so many legit account[s] are being flagged and reduce the time for account reviews after requested documentation is uploaded.”

Likewise, social media personality and cryptocurrency commentator Wendy O stated:

Services need to work and if they do not work you better have insanely good customer service.

Coinbase does not have either apparently.

While Coinbase claims to prioritize user security, many affected individuals find it difficult to resolve their account issues through customer support alone. This is where assistance from an experienced law firm like Silver Miller and legal action may become necessary.

Understanding Your Rights as a Coinbase User

As a Coinbase user, you are entitled to certain rights regarding your cryptocurrency holdings and account access. These include:

• The Right to Access Your Funds – While Coinbase operates under its own terms of service, the exchange cannot unlawfully withhold your cryptocurrency indefinitely.
• The Right to Privacy and Data Protection – Coinbase is required to protect user information under its privacy policies and applicable data protection laws.
• The Right to Clear Communication – The company must provide clear reasoning for account restrictions and ensure transparency regarding policy updates or security measures.

Despite these rights, many Coinbase users find themselves facing vague responses, extended delays, or complete inaccessibility to their assets. If your funds are frozen without proper justification, you may have legal recourse.

Steps to Take if Your Coinbase Account Is Restricted

If you are dealing with a restricted Coinbase account, here’s what you can do:

1. Review Coinbase’s Guidelines – Check their official help center for any potential reasons your account may be restricted.
2. Update Your Account Information – Ensure your identity verification and security settings are up to date.
3. Contact Coinbase Support – Submit a support request to Coinbase detailing your issue and requesting an update on your account status.
4. Document All Communications – Keep records of emails, chat transcripts, and any correspondence with Coinbase.
5. Consult a Cryptocurrency Lawyer – If Coinbase fails to resolve your issue or unlawfully withholds your funds, legal intervention by an experienced cryptocurrency attorney may be necessary.

How Silver Miller Can Help

At Silver Miller, we have built a strong reputation as the nation’s premier cryptocurrency litigation firm, fighting for the rights of investors and crypto users who have suffered financial losses. If your Coinbase account has been unfairly restricted, we can:

• Investigate Coinbase’s actions to determine if your rights have been violated.
• Demand the release of unlawfully withheld funds.
• Pursue legal action against Coinbase if necessary to recover your assets.
• Represent you in disputes involving account restrictions, frozen assets, or unfair trading practices.

Our team operates on a contingency-fee basis, meaning you don’t pay us unless we recover funds for you. We take on major cryptocurrency platforms, including Coinbase, Binance, and Kraken, to ensure our clients receive the justice they deserve.

When to Contact a Cryptocurrency Lawyer

If your Coinbase account remains restricted despite following all available support channels, it may be time to seek legal assistance. You should consider contacting Silver Miller if:

• Your funds have been frozen for an extended period without explanation.
• You’ve received vague or conflicting information from Coinbase’s support team.
• You suspect wrongful account closure, fraud, or unfair trading practices.
• You need legal representation to escalate your case against Coinbase.

Take Action Today – Contact Silver Miller

Cryptocurrency exchanges should be held accountable when they restrict accounts without proper justification, leaving users in financial limbo. At Silver Miller, we stand up for individuals who have been wronged by cryptocurrency platforms. If your Coinbase account is restricted and you’re struggling to access your funds, don’t wait any longer.

Contact Silver Miller today for a free, confidential consultation. Let us help you navigate the legal process and fight for the recovery of your assets.

The post Has Your Coinbase Account Been Restricted? Here’s What You Need to Know appeared first on SilverMillerLaw.com.

Silver Miller, a leader in cryptocurrency litigation, provides legal representation to individuals impacted by cryptocurrency exchange security and compliance failures. On January 2, 2023, Coinbase — one of the largest U.S.-based cryptocurrency exchanges — resolved a lawsuit brought against it by the New York State Department of Financial Services, agreeing in a Consent Order to pay $100 million to resolve what the NYDFS alleged were critical lapses in Coinbase’s anti-money laundering (AML) and Know Your Customer (KYC) protocols from as far back as 2018.

Exploring the Depth of Coinbase’s Compliance Issues

The Consent Order addressed what NYDFS officials asserted were severe shortcomings in Coinbase’s customer onboarding and transaction monitoring systems. Those deficiencies purportedly made Coinbase a hotbed for unauthorized activities and financial crimes, exposing users to potential hacks and the theft of crypto assets.

As New York DFS Superintendent Adrienne Harris stated at the time the settlement was announced: 

“It is critical that all financial institutions safeguard their systems from bad actors, and the Department’s expectations with respect to consumer protection, cybersecurity, and anti-money laundering programs are just as stringent for cryptocurrency companies as they are for traditional financial services institutions,” said Superintendent Harris.

“Coinbase failed to build and maintain a functional compliance program that could keep pace with its growth. That failure exposed the Coinbase platform to potential criminal activity requiring the Department to take immediate action including the installation of an Independent Monitor,” she added.

Upon reviewing the Consent Order, Interpath Advisory partner Federica Taccogna added: 

“The shortfalls are so clearly outlined that it could be used as a laundry list of things to get in order by other firms. Those failings are incredibly widespread.”

Impact of the Consent Order on Coinbase’s Operations

Investigations by the NYDFS have repeatedly highlighted the agency’s concerns with Coinbase’s KYC and Customer Due Diligence (CDD) processes. Properly implemented, these controls are essential for identifying suspicious activities and are standard practice across financial institutions to safeguard against illegal operations.

What Coinbase Users Need to Know About the Settlement

The issues identified by the NYDFS allegedly led to over 100,000 unreviewed alerts at Coinbase related to suspicious activities, which significantly compromised user security. According to the Consent Order, the issues identified would require Coinbase  to better manage and safeguard user transactions effectively as a means of reducing risk of substantial financial losses for Coinbase users in the future.

Legal Options for Coinbase Users with Hacked Accounts

Users whose Coinbase accounts were compromised for reasons related to those addressed in the Consent Order might have grounds for individual claims against Coinbase, depending upon a variety of factual and legal factors. 

How Silver Miller Can Help Victims of Asset Loss at Coinbase

Silver Miller stands ready to assist those affected by issues such as those addressed in the NYDFS-Coinbase Consent Order, with experience in handling the complexities of arbitration claims related to cryptocurrency fraud. If you’ve suffered substantial financial losses at Coinbase, contact Silver Miller to review your case and discuss your legal options for recovery.

The post Coinbase Settlement: A $100 Million Compliance Failure appeared first on SilverMillerLaw.com.