Coinbase Users Report Account Restrictions Amid Market Rally  

• Coinbase account restrictions affect verified users amid market activity, no clear reasons given.
• VPN usage and other tools trigger Coinbase’s automated flagging mechanisms, leading to account freezes.
• Limited customer support and unclear suspension policies frustrate users during peak trading periods.

Coinbase users, including long-term account holders and crypto influencers, have reported sudden and unexplained restrictions on their accounts. The reports, which have surfaced across social media platforms, highlight the inability to trade or transfer funds during heightened market activity. 

Social media posts reveal that Coinbase has restricted accounts without providing clear reasons or warnings, affecting even verified users with extensive histories on the platform. This comes when Coinbase expands its token offerings, including meme coins, to capitalize on market momentum. 

Coinbase implements robust Know Your Customer (KYC) requirements and enforces regional restrictions. The exchange has extensive terms and conditions that allow for account suspensions, changes in trading limits, and outright bans, sometimes without prior notice. 

Although Coinbase’s terms state a two-month notice should precede account restrictions, the recent wave of suspensions reportedly did not comply with this policy. Once flagged, users have a 90-day window to withdraw assets, but account recovery can take months, particularly during periods of high market activity.  

One key factor contributing to account flagging is the use of Virtual Private Networks (VPNs). While not explicitly banned, using a VPN to access Coinbase from restricted regions violates the platform’s terms. 

Additionally, VPN usage may trigger automated security mechanisms, flagging accounts as potentially involved in money laundering or suspicious activities. Coinbase’s algorithms are designed to detect and restrict traffic from known VPN servers, making it challenging for users who rely on VPNs for privacy.  

Beyond VPN usage, other tools like ad blockers or certain third-party applications can also result in account restrictions. Reports suggest that even users not employing VPNs have experienced account freezes during peak trading periods, further complicating their ability to engage with the market.

Coinbase has historically flagged accounts for unusual transactions, requiring additional verification and leading to delays in accessing funds.  

As a publicly traded entity, Coinbase must adhere to stringent regulations regarding its customer base. However, these measures and limited customer support have left users facing prolonged account freezes during critical market periods.