COIN jumps even as Coinbase comes under scrutiny for hacked crypto accounts

coinbase COIN hack
“Coinbase” by Jon Russell is licensed under CC BY 2.0

Key Coinbase takeaways:

  • Hackers target Coinbase accounts with no repercussions.
  • Some sutomers were locked out of their accounts with no help from the customer support
  • The discontent did not affect the stock price, as COIN grows, backed by a bullish prognosis.

YEREVAN (CoinChapter.com) – Coinbase, one of the leading US-based crypto exchanges, saw its COIN stock price recovering. In contrast, the exchange came under plenty of criticism after customers reported multiple hacks that wiped out their accounts.

The victims claimed that the company’s customer support was mostly unavailable or was not of any help when reached.

Coinbase hacks

Throughout the past several months, the crypto exchange has received multiple complaints about hacks and locked accounts. However, according to Ed Mierzwinski, senior director of the Federal Consumer Program at U.S. Public Interest Research Group, it never allegedly investigated those complaints.

“Coinbase should be investigating consumer complaints in a timely manner, [and] it should be hiring staff to answer the phone. Consumers say it isn’t doing either,”

he commented back in June 2021.

The customer support has not repaired its reputation since, as complaints about hacks and locked accounts continue to pile. In addition, according to the FBI, once a culprit accesses the account and withdraws funds, no one can reverse the transaction.

After a user had over $150,000 wiped from their account, Coinbase’s Regulatory Response Team sent the following reply.

“There is no credible or supportable evidence that the compromise of your login credentials was the fault of Coinbase. As a result, Coinbase is unable to reimburse you for your alleged losses,”

read the letter

David Silver, an attorney who focuses on cryptocurrency, stated that many attacks happen through phone companies. Hackers can seize control of a victim’s phone number and SIM card and do unretrievable damage.

“The problem with SIM swapping and cryptocurrency is the moment you lose access to your cell phone, professional hackers will steal all of your money in less than 30 minutes,” 

commented the attorney.

Also read: Coinbase stock emerges as Bitcoin’s greatest diversifier; here’s why

Fed up customers

Coinbase also gets regular complaints about locked accounts. Better Business Bureau (BBB), an NGO focused on advancing marketplace trust, conducted a report on Coinbase in March 2021.

“[Coinbase has a] pattern of complaints from customers who state they are locked out of their accounts, even after providing required information or updates.”

concluded the Bureau.

Moreover, when the BBB filed a formal inquiry about the lack of timely response to the complaints, they didn’t get an answer either.

Some angry users took to Twitter to slam the exchange. One of them was a crypto analyst with a substantial following, CryptoKaleo.

While Coinbase tried to lighten the mood with a tweet unrelated to customer support, it still got complaints.

Also read: Coinbase warns crypto tax provision will affect 60 million Americans

Meanwhile COIN…

…was on the rise ahead of the European session Wednesday and hit $259. Moreover, John Todaro, the vice president of Needham blockchain research company, put the target COIN price at $420. One of the reasons behind the optimistic prognosis is the “aggressive listing policy.”

The executive commented that Coinbase adopted the strategy of listing “any coin that is legal,” which would broaden the exchange base and bring in revenue.

“We see COIN as a market-leading crypto-asset exchange with significant future opportunities beyond exchange services which include staking, custody, yield-bearing products, and more”.

commented the research company.
Coinbase stock price could go up to $420. Source: COIN on TradingView.com
Coinbase stock price could go up to $420. Source: COIN on TradingView.com

COIN has not seen a cost over $400 since Coinbase first went public back in April 2021. While the exchange still has plenty to do with customer satisfaction and cyber-safety fronts, experts predict an uptrend in the company’s future.

Also read: Coinbase stock to soar to $316 per share, macro-financial analyst predicts

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