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Beware of Coinbase. They Reversed My BTC Sale

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Beware of Coinbase. They Reversed My BTC Sale

#1
I sold 5 BTC on December 6th: http://d.pr/i/n9Zc

Couple of days later the BTC showed up again in my account saying they needed to "offset" my transaction which makes no sense because I originally purchased the BTC using Coinbase. I let it be. On December 13th I got a notice saying that the sale had finally completed and so I waited hoping any day my bank account would be credited with $4,118.94.

Instead of the money, they added a transaction to my account saying that I had "Purchased" 5 Bitcoins which I never did. So now instead of having sold 5 BTC at $832. I'm holding 5 BTC at a much lower price which I never wanted. How convenient Coinbase. You obviously benefited from my sale because you sold my coins to someone. And now you conveniently added it back into my account since the price is lower.

The worst part of all this is that I have opened support tickets, tweeted at them, wrote an email directly to the CEO Brian Armstrong. And there is nothing but silence. I even wrote a blog post: amit.roon.io/an-open-letter-to-coinbase

Things can go wrong in a fast growing startup but ignoring customers is the worst thing you can do.

Re: Beware of Coinbase. They Reversed My BTC Sale

#2
They probably reversed it because they (wrongly) suspected fraud. I'm sure it's well within their Terms of Service.

You're the one gambling money on an unproven digital currency, created by an anonymous person on the internet, via an unproven and completely overwhelmed little startup. If you can't handle losing money on a failed transaction then don't play the game.

Re: Beware of Coinbase. They Reversed My BTC Sale

#3
post #2

They probably reversed it because they (wrongly) suspected fraud. I'm sure it's well within their Terms of Service. You're the one gambling money on an unproven digital currency, created by an anonymous person on the internet, via an unproven and completely overwhelmed little startup. If you can't handle losing money on a failed transaction then don't play the game.

It wasn't a failed a transaction. They never said the transaction failed. I got a confirmation that the sale was completed.

Re: Beware of Coinbase. They Reversed My BTC Sale

#4
post #3
post #2

They probably reversed it because they (wrongly) suspected fraud. I'm sure it's well within their Terms of Service. You're the one gambling money on an unproven digital currency, created by an anonymous person on the internet, via an unproven and completely overwhelmed little startup. If you can't handle losing money on a failed transaction then don't play the game.

It wasn't a failed a transaction. They never said the transaction failed. I got a confirmation that the sale was completed.

It's failed if Coinbase suspected fraud and it's reversed.

Re: Beware of Coinbase. They Reversed My BTC Sale

#5
post #4
post #3

Earlier quoted context omitted.

It wasn't a failed a transaction. They never said the transaction failed. I got a confirmation that the sale was completed.

It's failed if Coinbase suspected fraud and it's reversed.

From their Terms of Service:

> 3.5 When buying or selling bitcoin, you are buying or selling from Coinbase directly. Coinbase does not act as an intermediary or marketplace between other buyers and sellers of bitcoin.

Re: Beware of Coinbase. They Reversed My BTC Sale

#6
post #5
post #4

Earlier quoted context omitted.

It's failed if Coinbase suspected fraud and it's reversed.

From their Terms of Service: > 3.5 When buying or selling bitcoin, you are buying or selling from Coinbase directly. Coinbase does not act as an intermediary or marketplace between other buyers and sellers of bitcoin.

Also from their Terms of Service:

> Coinbase may cancel or reverse potentially high-risk buys or sells of bitcoin, including those made using reversible payment methods.

Could very easily be that your transaction was flagged and then reversed. Your BTC was returned in full. If the price had gone in the other direction I doubt you would be offering to compensate Coinbase for the difference.

Re: Beware of Coinbase. They Reversed My BTC Sale

#7
post #4
post #3

Earlier quoted context omitted.

It wasn't a failed a transaction. They never said the transaction failed. I got a confirmation that the sale was completed.

It's failed if Coinbase suspected fraud and it's reversed.

You cannot reverse bitcoin transaction. It either happened or not, determined by the broadcasted block chain.

Re: Beware of Coinbase. They Reversed My BTC Sale

#8
post #7
post #4

Earlier quoted context omitted.

It's failed if Coinbase suspected fraud and it's reversed.

You cannot reverse bitcoin transaction. It either happened or not, determined by the broadcasted block chain.

It's a Coinbase transaction and not a Bitcoin transaction that's at issue.

Re: Beware of Coinbase. They Reversed My BTC Sale

#9
post #6
post #5

Earlier quoted context omitted.

From their Terms of Service: > 3.5 When buying or selling bitcoin, you are buying or selling from Coinbase directly. Coinbase does not act as an intermediary or marketplace between other buyers and sellers of bitcoin.

Also from their Terms of Service: > Coinbase may cancel or reverse potentially high-risk buys or sells of bitcoin, including those made using reversible payment methods. Could very easily be that your transaction was flagged and then reversed. Your BTC was returned in full. If the price had gone in the other direction I doubt you would be offering to compensate Coinbase for the difference.

If it failed then why did they take 7 days to return my BTC? That's the benefit of BTC that things can be verified in a matter of minutes.
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