Coinbase Cuts Account Lockouts by 82% – Can It Finally Win Back Trader Trust?

Crypto Reporter

Shalini Nagarajan

Crypto Reporter

Shalini Nagarajan

About Author

Shalini is a crypto reporter who provides in-depth reports on daily developments and regulatory shifts in the cryptocurrency sector.

Author Profile

Share

Copied

Last updated: 

June 9, 2025

Why Trust Cryptonews

Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews

Coinbase says it has slashed unnecessary account restrictions by 82%, following widespread criticism over long-standing issues that left users locked out of their accounts for weeks or even months.

CEO Brian Armstrong acknowledged the issue in a June 6 post on X, calling account freezes a “major issue” that had persisted “for longer than is acceptable.” He said resolving it has become a priority for the company.

“The issue has been reduced by 82% so far, with more improvements coming,” Armstrong said. He also encouraged users still affected to contact Coinbase Support.

Coinbase Tries to Rebuild Trust After Long-Standing Account Freeze Issues

The improvements come after years of frustration among users, some of whom reported being locked out for extended periods with limited ability to reach support.

Many cited abrupt freezes with no clear explanation, while others reported abandoning the platform altogether due to poor service and a lack of recourse.

These challenges have contributed to eroding user confidence, compounded recently by a data breach that exposed personal details of over 70,000 customers.

Armstrong credited the progress to Dor Levi, a recent hire on the Coinbase product team. Levi, who joined nine weeks ago, said the company had invested heavily in upgrading its machine learning models and internal infrastructure. These changes improved the accuracy of automated systems that flag accounts for potential violations, thereby reducing false positives and unnecessary restrictions.

System Fixes Continue but Users Say Customer Service Still Falls Short

While the company aims to minimize disruptions, Armstrong and Levi noted that some freezes will continue in cases involving legal obligations, sanctions, or fraud prevention. Still, Levi admitted that Coinbase’s handling of account access “doesn’t meet [his] own bar,” and pledged further refinement.

The public response remains mixed. In replies to Armstrong’s post, some users said they remain locked out, with one claiming to have been denied access to their account for over two years. Another said they left the exchange after an eight-month freeze. Others complained about difficulty reaching human support, echoing a long-running complaint about customer service delays.

The timing of the update follows scrutiny over Coinbase’s handling of a data breach disclosed in May. According to Reuters, attackers bribed overseas support contractors last December to obtain access to sensitive user information, including government-issued ID and home addresses.

Exchange Tries to Reset, But Consistency and Transparency Will Be the Real Test

So, can Coinbase win back trader trust? The 82% reduction is a meaningful start. However, trust in crypto is hard-won and easily lost. For many retail users who left after prolonged freezes, one announcement is not enough. They need consistent action to believe the change is real.

What matters now is whether Coinbase follows through with consistent improvements, transparent communication, and a more responsive support system.

As the largest custodian of spot Bitcoin ETFs and a major US exchange with over 100m users, Coinbase has much at stake. The company’s efforts to resolve user pain points are being closely watched, both by retail traders and also by regulators and institutions evaluating the security and reliability of crypto infrastructure.