Brian Armstrong, CEO of Coinbase, is finally saying what many users have felt for years. He admitted that freezing customer accounts “is a major issue” for far too long. This comes as Dor Levi, who joined Coinbase just nine weeks ago, leads the charge to overhaul how account restrictions are handled.
In a recent post on X, Levi shared a video addressing the issue and said the goal is simple: ‘fixing unnecessary account restrictions.’ He added that account freezes should only happen in cases involving court orders, sanctions, or when protecting users from scams or compromised accounts.
Coinbase has already reduced account lockouts by around 82%. Coinbase has made major investments to tackle the issue. The company has upgraded its machine learning models, infrastructure, and core teams, resulting in better accuracy when detecting potential risks.
Levi added, “We’ve established guardrails and checks/balances to ensure we maintain focus on this and won’t stop iterating.” More importantly, Coinbase is shifting many previously manual processes into the app. These include source-of-funds checks and enhanced KYC (Know Your Customer) steps. This change allows users to resolve issues directly, without waiting for slow or unclear support responses.
While Armstrong admitted there’s still more work to do, he emphasized that this is not a one-off fix. Coinbase has introduced new checks and balances to make sure these improvements continue. “If your account is still restricted and it’s not due to legal or sanction reasons, reach out to Coinbase Support via DM,” he urged.
Also Read: Coinbase Adds Wrapped XRP and DOGE to Base Layer 2
