Coinbase has significantly cut the number of unnecessary user account freezes, addressing what it called a “major issue” that has impacted user trust for years. According to CEO Brian Armstrong, account restrictions have been reduced by 82% following major infrastructure and machine learning upgrades.
Years-Long Problem Gets Top Priority
In a public statement on June 6, Armstrong acknowledged the account freezing issue had persisted “longer than acceptable.” He emphasized that resolving the issue is now a top operational priority, adding that affected users should contact Coinbase Support directly for assistance.
“We’ll keep you updated as further improvements roll out,” Armstrong stated.
Users have long reported months-long account freezes, sometimes lasting over a year, leaving them unable to access their assets. These disruptions led many to abandon the platform altogether.
Machine Learning Models Driving the Fix
The recent improvement is credited largely to Dor Levi, a product team member who joined Coinbase nine weeks ago. Levi said the team made “significant investments” in machine learning models and backend infrastructure.
“We’ve improved the precision and recall of all our models, and are seeing fewer restrictions/freezes as a result,” Levi noted.
These upgrades have enabled Coinbase to reduce false positives — where accounts were unnecessarily frozen due to automated detection systems misidentifying suspicious activity.
Legal Restrictions Still Apply
While Coinbase has made progress, restrictions due to court orders, sanctions, or regulatory compliance will still be enforced. Armstrong and Levi reiterated that compliance remains non-negotiable for the exchange’s global operations.
Despite advancements, Levi admitted the system still doesn’t meet his “own bar” for user experience, emphasizing that further improvements are coming.
User Concerns Remain After Data Breach
Coinbase’s reputation was further tested by a recent data breach affecting over 70,000 users. Sensitive data, including ID documents and home addresses, was accessed after some overseas customer support agents were bribed.
“It is extremely hard to speak to a live customer service person,” said one user, citing long delays and unresolved cases.
Another user claimed their family friend lost both Bitcoin (BTC) and Ether (ETH) in a scam linked to the breach.
Coinbase Still a Market Leader
Despite these issues, Coinbase remains one of the largest global crypto exchanges, serving over 100 million users and acting as the largest custodian of spot Bitcoin ETFs. The company is expected to roll out more security enhancements and user-focused improvements in the coming months.