Nasdaq-listed cryptocurrency exchange Coinbase is facing accusations of enforcing Bitcoin withdrawal limits. The complaint was filed by Colin Brown, who claims to have been a customer of the American real estate agency for more than ten years.
In his report, Brown says he tried to withdraw his bitcoins from his wallet but was faced with a weekly withdrawal limit of $5,000 (R$25,000). Despite being a small account with less than 300 followers, her tweet has already been viewed 600,000 times at the time of writing.
“Coinbase restricts bitcoin withdrawals. I just tried sending BTC from Coinbase to my cold wallet and found a NEW withdrawal limit policy of $5,000 per week (implemented 10/13). I have been a Coinbase customer for 10 years. WITHDRAW YOUR BITCOIN FROM EXCHANGES!”
. @Coinbase limits the withdrawal of bitcoins. I just tried to send BTC from Coinbase to my cold wallet and came across a NEW $5k/week withdrawal limit policy (implemented 10/13). I have been a Coinbase customer for 10 years. GET YOUR BITCOIN DISCOUNT ON EXCHANGES!!!!
— Colin Brown (@thecolinbrown) October 23, 2023
Coinbase has contacted the customer
As the tweet gained popularity, Coinbase contacted the angry customer. According to Colin Brown, the broker stated that the limit was created by its algorithm.
“Coinbase support messaged me via this thread and verified and unlocked my BTC via private message”said Brown. “Unfortunately, they offered a rather idiotic explanation about algorithms and why they were frozen. I don’t want to be an alarmist, and this could have been an extreme case, but self-control should be an upheld principle of bitcoin.”
‘What if you hadn’t amplified my tweet? Would I be doomed to withdraw $5,000 a week to slowly get my coins back?
Looking for information on withdrawal limits, the Livecoins couldn’t find exact numbers on the Coinbase website. However, the broker has a page titled “Why did my limits change?” in your frequently asked questions. In the explanation, the text confirms the existence of an algorithm that can limit withdrawals.
“Coinbase account limits are determined by an algorithm that takes into account several factors, including account age, location, transaction history, payment method, and completed verification steps.”points to the text on Coinbase’s website. “Unfortunately, this means it is possible that the limits will also be reduced.”
As a suggestion, Coinbase points out that its customers can increase their KYC level by performing additional verification. However, Brown claims his efforts were unsuccessful.
“I did it”the user responded to another investor when he was tipped to follow this procedure. “In my experience, this increases daily/weekly purchase and compensation limits. This issue appears to be a product of a new ‘Send Cryptocurrency’ limit.
Ultimately, Brown was able to withdraw his bitcoins, but he still seems upset about the situation as some cryptocurrency brokers appear to be limiting withdrawals just like traditional banks do.
“After the compensation is released, this bitcoin should be owned by the customer and self-management should be unhindered”responded in another tweet.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
