Ethereum Dev Sees Coinbase Account ‘Nuked’ After Attempting USDC Transfer

“Coinbase simply locked my account after making an attempt to ship $25,000 USDC,” reported Ethereum developer Eric Connor on Dec. 3.

“Wasn’t Brian Armstrong simply speaking about debanking? Very cool!” he quipped.

He added that the notification was “utterly ineffective” as each paths to unlock the account required him to register, which he couldn’t do.

“Service agent on the cellphone additionally utterly ineffective,” he added.

Coinbase simply locked my account after making an attempt to ship $25k USDC

Wasn’t @brian_armstrong simply speaking about debanking???

Very cool! pic.twitter.com/3s7waNxsWn

— eric.eth (@econoar) December 2, 2024

Nuked Account a Lazy Answer

Others identified that he wasn’t being ‘debanked’ however protected in opposition to account hacks and unauthorized transfers to safeguard the $25,000 USDC. It looks like a “lazy implementation if that’s the case,” he mentioned earlier than including:

“There are many higher methods to deal with this than simply nuking my account.”

Connor then revealed that the account was locked out as a result of he was utilizing a VPN (digital personal community) when doing the switch and there have been no warnings that this may increasingly occur.

There have been a number of responses in settlement from those that had additionally been locked out of centralized trade accounts with no warnings, a few of them for months on finish. Blockchain lawyer Joshua Carlson said that total, the system is working as designed.

“I might advocate organising a passkeys and I wouldn’t be upset with Coinbase in the event that they suspected any individual making an attempt to hack into my account they usually locked it. I’ll think about {that a} internet profit,” he added.

Coinbase did reply to the submit, stating, “We’re sorry to listen to that your account was locked after sending your USDC belongings. We’re at present trying into this and can attain out to you shortly. Within the meantime, please ship us a DM so we will give you updates straight.”

Just a few hours after the lockout, Connor reported the incident resolved however added that the replies to his submit on X have been “mind-blowing.”

“Hopefully Coinbase is engaged on a a lot better course of for not so simply locking accounts AND recovering accounts. I’m fortunate with my attain. Others, not a lot…”

Limits Decreased With out Warning

Different responses have been from prospects complaining that their day by day limits had just lately decreased for no purpose.

Fellow Ethereum developer ‘Zak’ opined that this can be an effort to scale back promoting strain.

“My idea is that they’re nerfing limits for individuals who have withdrawn over a specific amount inside the previous yr or one thing to scale back sell-side strain and hold liquidity on their books,”

Centralized exchanges are slowly morphing into banks exhibiting related conduct, equivalent to arbitrary account lockouts, lack of buyer assist, limits on transactions, and calls for for an growing quantity of non-public data.