After hoarding coins and becoming 'zombie fans', Coinbase caused controversy by canceling user accounts and confiscating their assets.

Author: Ting, Shenyu, Lianchuang and CEO of Cobo, a digital asset management solution provider of BlockTempo

, posted on the social platform yesterday, saying, "The biggest natural enemy of hoarding currency is_ _?" is the title, and a netizen shared on the social platform Xiaohongshu that his assets were misappropriated by the centralized exchange Coinbase.

Netizens scolded Coinbase for openly grabbing user assets

A Chinese netizen with the pseudonym "Chu" on the social platform Xiaohongshu published an article on the 24th titled "Coinbase openly grabbed, a complete record of Bitcoin investment rights protection" ” article.

The article mentioned that this netizen was All in the currency circle in 2017 and has been operating frequently in the past few years. In 2021, he decided to start hoarding coins. However, due to concerns that Huobi and Binance were frequently hacked and disconnected, at the end of the year he transferred all the coins to Co in Base, a legal trading platform in the United States. After that, he occasionally logged in to his account. View asset status.

However, in June this year, the netizen found that the Coinbase account could not be logged in. After consulting customer service, he found that the account had been cancelled, and the BTC in the account was sold and sent to an institution in Wyoming, USA. The reason given by Coinbase was that the netizen’s account had not been logged in for a long time. There is no activity and the asset is considered "Unclaim Property".

Assets are regarded as "Unclaim Property"

Coinbase's official website explains that, depending on state laws, accounts that have not been active for 3 to 5 years will be classified as Unclaim Property. However, the netizen said in February and March this year There are logins every month, so he thinks the reason given by Coinbase customer service is pure nonsense. After netizens continued to ask and provided login credentials, Coinbase customer service said they were helpless and could only ask netizens to go to the Wyoming’s Division of Unclaimed Property (Wyoming’s Division) to get their assets back.

Since the incident, the netizen has been paying attention to Wyoming’s Unclaimed Property Division’s website and discovered that he is not the only one with this case, there are many similar situations, so it took the department 3 months just to sort out these assets. The netizen also found his asset records after searching for many days, so he quickly searched for various information and tried to declare the recovery. However, since he had forgotten most of the personal information he had used to register the account, he believed the chances of recovering his assets were slim.

Netizen’s asset records were transferred

What is Unclaimed Property?

According to the official Coinbase website, your funds will be confiscated when the account owner has not made any contact or generated any activity for a period of time designated by state law (usually 3-5 years), at which point they are considered Unclaimed or abandoned property.

Forms of unclaimed property include, but are not limited to, items in checking/savings accounts, brokerage accounts, 401k accounts, retirement fund accounts, and safe deposit boxes.

The same problem is frequently reported in the Reddit community

On the other hand, many netizens complained about the same problem on the social forum Reddit, describing that their accounts were closed and their assets were transferred to the Wyoming Unclaimed Property Department.

In many cases, it can be found that most of the accounts closed by Coinbase are because "the user established an account with Coinbase Kenya Ascending Markets, Ltd., which is currently closed", and Coinbase stated that it has repeatedly tried to contact the user through the user's verified email address. , notified about account closure, but did not receive a reply from the user.

According to the picture provided by Xiaohongshu netizen "Chu", Coinbase customer service responded that his account was closed because he established an account with Coinbase Kenya Ascending Markets, Ltd.

However, many Reddit netizens also criticized: "The Coinbase APP does not have any notifications", "The email description is unclear, and it does not clearly state that the account should be closed"...

Coinbase customer service responded to Xiaohongshu netizens

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