Coinbase says it has reduced frozen accounts by 82%. CEO Brian Armstrong called it a “major issue” and said the problem had existed “longer than is acceptable.” He posted the update on June 6 on X, adding that the company would share more updates soon.
Armstrong asked affected users to contact Coinbase Support. He said solving the issue had become a top company priority.
Users have long complained about Coinbase frozen accounts, some lasting months or even years. These issues led many to stop using the platform. The situation worsened after a data breach exposed information from over 70,000 Coinbase accounts.
Machine Learning Updates Reduce Coinbase Account Freezes
The drop in Coinbase account freezes followed work by Dor Levi, who joined the company’s product team nine weeks ago. Armstrong credited Levi for leading the efforts.
Levi said Coinbase had made major changes to its machine learning models and infrastructure. These updates improved how the system detects fraud and reduced the number of false account restrictions.
“We’ve improved the precision and recall of all our models,”
Levi posted on X.
“We are seeing fewer restrictions/freezes as a result.”
Coinbase said it would still freeze accounts if required by court orders or legal sanctions. Levi added that the current user experience still did not meet his “own bar” and confirmed that further work is ongoing.
Coinbase Users Report Long-Term Account Lockouts
Many users responded directly to Armstrong’s post with complaints. One said they had been locked out for over two years. Another said their account was frozen for eight months, and they stopped using Coinbase.
Several users blamed Coinbase customer support. One wrote that it was “extremely hard to speak to a live customer service person.” Another added that it “can take forever to track someone down.”
The comments reflect ongoing problems with Coinbase account freeze complaints, including lack of updates and unresolved tickets. The company has not responded publicly to individual cases posted on X.
Coinbase Data Breach Impacted Over 70,000 Users
In December 2024, Coinbase was affected by a data breach involving overseas customer support agents. Reports said some agents were bribed by outsiders to give access to sensitive customer data.
The attackers obtained government-issued ID photos and home addresses. The breach impacted about 70,000 Coinbase accounts, according to internal documents.
Although the incident happened in December, Coinbase disclosed it publicly only in May 2025. According to a user comment, a family friend lost Bitcoin (BTC) and Ethereum (ETH) in a scam linked to this breach.
Coinbase said it would strengthen internal controls, but has not shared full details on upcoming security measures.
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