Brian Armstrong Calls Account Freezing a ‘Major Issue’ for Coinbase, Says Problem Reduced by 82% With More Improvements Coming

Coinbase CEO Brian Armstrong says that the highest US-based crypto alternate has dramatically decreased the cases of account freezes.

In a brand new publish on the social media platform X, Armstrong says Coinbase has made fixing unwarranted account freezes a prime precedence, whereas acknowledging the difficulty has lasted longer than it ought to have.

“Account freezing has been a serious concern at Coinbase for longer than is appropriate. I may listing a bunch of the underlying explanation why it received so dangerous within the first place, however what’s extra vital is that we’ve made it a precedence to repair, and we’ve got been making good progress…

The problem has been decreased by 82% to date, with extra enhancements coming. We’ll maintain you up to date as additional enhancements roll out.”

Armstrong additionally guarantees a extra well timed response to prospects whose accounts are frozen.

“In case your account remains to be restricted (not for sanctioned or criminality) please direct message @coinbasesupport and we’ll prioritize getting it checked out ASAP.”

Armstrong offers credit score to Coinbase’s product staff member Dor Levi, who was employed in April, for reaching the repair.

Says Levi,

“For those who’re on CT (crypto Twitter), you understand how important this concern has been for customers. I actually am a Coinbase person, and our restriction expertise shouldn’t be assembly my very own bar.

The aim is evident: account freezes needs to be uncommon, restricted to conditions that warrant them, primarily once we’re legally obligated (e.g. sanctions or court docket orders) or defending customers (e.g. from scams or account compromises). We’re dedicated to getting this proper.

Latest releases have enabled us to make large enhancements with out sacrificing our authorized and regulatory obligations or our dedication to security.

In brief:

• We’ve decreased the frequency of account locks by ~82% to date, and new modifications are presently rolling out that can deliver additional reductions.
• We’ve made important investments in our ML (machine studying) fashions, infrastructure, modeling, and groups. Up to now, we’ve improved the precision and recall of all our fashions, and are seeing fewer restrictions/freezes because of this.
• We’ve established guardrails and checks/balances to make sure we preserve deal with this and received’t cease iterating.
• We’re additionally tackling this downside from the opposite finish by shifting processes like source-of-funds verification and enhanced KYC (Know Your Buyer) into the app. This implies most restriction varieties can have self-service flows to take away restrictions, which is rather more environment friendly than earlier choices.”

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