- Coinbase has reduced unnecessary user account restrictions by 82% as of early June 2025.
- The exchange addressed long-running problems with frozen accounts, which had affected customer trust and platform use.
- Recent improvements are credited to upgrades in Coinbase’s machine learning models and infrastructure.
- The company continues to enforce restrictions required by court orders and sanctions for compliance.
- Coinbase faced criticism following a data breach that exposed information from over 70,000 user accounts.
Coinbase, one of the world’s largest cryptocurrency exchanges, announced it has cut unnecessary account restrictions for users by 82% as of June 2025. CEO Brian Armstrong confirmed the change in a post on X (formerly Twitter), calling the issue of frozen accounts a “major issue” that had lasted longer than acceptable.
Armstrong said addressing frozen accounts is now a high priority for the platform, stating, “The issue has been reduced by 82% so far, with more improvements coming.” He invited users whose accounts remain frozen to reach out to Coinbase Support for help.
Improvements came after Dor Levi, a product team member who joined Coinbase nine weeks earlier, led efforts to fix the problem. Levi attributed progress to significant investment in the platform’s machine learning systems and infrastructure. He explained, “We’ve improved the precision and recall of all our models, and are seeing fewer restrictions/freezes as a result.”
Despite these changes, Armstrong and Levi both noted that freezes will still occur in cases required by legal orders or regulatory sanctions. Levi also admitted that customer service standards have not yet met his expectations, continuing to work on further improvements.
For several years, some users had reported being locked out of their accounts for months or longer, leading them to leave the platform. Complaints continue regarding slow and hard-to-reach customer service.
Security concerns also increased after an incident in December 2024, when illicit actors bribed overseas customer service agents to access sensitive information about roughly 70,000 users. That data breach was disclosed in May 2025 and led to calls for better platform security. According to one user, a Bitcoin and Ether theft possibly tied to the breach affected someone they know.
Coinbase serves over 100 million customers and is the largest custodian of spot Bitcoin exchange-traded funds. The company has stated plans to improve security and maintain legal compliance as it addresses recent challenges.
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