Fast Facts
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Account Lockouts & Data Breach: Crypto investigator ZachXBT criticized Coinbase for locking him out of his account twice in a month without explanation and failing to disclose a data breach that compromised customer information.
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Security Concerns: Despite its reputation as a secure platform, Coinbase has faced ongoing issues with account lockouts and inadequate user support, leading to significant financial losses for users.
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Previous Criticisms: This is not ZachXBT’s first criticism of Coinbase; he previously exposed that scammers impersonated Coinbase support, resulting in $65 million in stolen funds.
- Inadequate Response: Coinbase has been accused of poor responsiveness to security threats and lacks transparency, raising significant concerns about its handling of user security and support.
Crypto investigator ZachXBT has publicly criticized Coinbase, a leading cryptocurrency exchange. He highlighted issues like account lockouts and an undisclosed data breach that he claims resulted in user losses.
In his recent tweet, ZachXBT expressed frustration over being locked out of his account twice in a month. He pointed out that Coinbase failed to provide any explanations for these inconveniences. Furthermore, he expressed concern about a data breach that the company did not disclose, leading to financial hardships for customers.
Although Coinbase markets competitive annual percentage returns on stablecoins, ZachXBT stated he cannot recommend the platform due to these unresolved security issues. His comments reflect broader concerns regarding Coinbase’s user security and customer support.
Despite its public listing in 2021 and reputation as a safe crypto entry point, Coinbase faces scrutiny from experienced users. ZachXBT has previously criticized the exchange for its leadership, who he claims neglected to report theft addresses or respond effectively to security threats. His investigations revealed that scams had led to losses of at least $65 million between December 2024 and January 2025. Scammers impersonated Coinbase support through spoofed messages, tricking users into sending funds to compromised accounts.
Coinbase has a history of user complaints. In 2021, customers reported being locked out of accounts for extended periods, particularly during market fluctuations. Many users struggled to receive timely support, which often resulted in financial losses. The exchange also faced similar accusations last October, with accounts being restricted during critical times.
Concerns over security continue to mount, as attackers have attempted to impersonate support staff. A researcher under the pseudonym ‘pcaversaccio’ criticized Coinbase for its handling of VPN usage. In response, Senior Director of Product Management Scott Shapiro stated that VPNs do not automatically trigger security checks. However, they can raise flags if combined with unfamiliar login attempts.
ZachXBT’s insights underscore the importance of transparency in the cryptocurrency industry. As users seek secure platforms, companies like Coinbase must navigate these challenges effectively to maintain trust and foster development in a rapidly evolving tech landscape.
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This content is for informational and entertainment purposes only and does not constitute financial or investment advice. Cryptocurrency is highly speculative and carries significant risk, including the potential loss of your entire investment. Do not make financial decisions based on this information. Consult a licensed financial advisor before investing. This site does not offer, sell, or advise on cryptocurrency, securities or other regulated financial products in compliance with SEC and applicable laws. Please do your own research and seek professional advise.
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