Exchange Vows to Improve User Experience Following Years of Complaints and Recent Data Breach

Coinbase CEO Brian Armstrong announced that the company has reduced unnecessary account restrictions by 82%, addressing a long-standing concern that has frustrated users for years. The improvement is attributed to recent advancements in machine learning models and infrastructure upgrades, as part of an internal initiative to enhance the customer experience on one of the world’s largest cryptocurrency exchanges.

In a June 6 post on X (formerly Twitter), Armstrong acknowledged that the issue had persisted “for longer than is acceptable,” and committed to further improvements in the coming months.

“The issue has been reduced by 82% so far, with more improvements coming,” Armstrong wrote. “We’ll keep you updated as further improvements roll out.”

Account freezing has been a major issue at Coinbase for longer than is acceptable. I could list a bunch of the underlying reasons why it got so bad in the first place, but what’s more important is that we’ve made it a priority to fix, and we have been making good progress. Shout… https://t.co/Emrq6KQhpD

— Brian Armstrong (@brian_armstrong) June 6, 2025

Account Restrictions Have Long Frustrated Users

Coinbase has faced sustained criticism from users who say they have experienced lengthy, unexplained account freezes, sometimes lasting months or even years. Many reported difficulty accessing funds, navigating customer service, or even getting a response from the company — prompting some to abandon the platform altogether.

The issue has been particularly damaging to customer trust, especially in the wake of a mass data breach disclosed in May 2025, which compromised sensitive information for over 70,000 users, including government-issued IDs and home addresses.

Machine Learning Enhancements Drive Progress

Armstrong credited the significant reduction in freezes to Dor Levi, a product team member who joined Coinbase nine weeks ago with the express mission of solving the account restriction issue.

I joined @coinbase 9 weeks ago with a vital goal: fixing unnecessary account restrictions.

If you’re on CT, you know how significant this issue has been for users. I myself am a Coinbase user and our restriction experience is not meeting my own bar.

The goal is clear: Account… pic.twitter.com/zvGuM3QSZi

— Dor (@dorvonlevi) June 6, 2025

In a follow-up post, Levi explained that the progress stems from substantial upgrades to Coinbase’s machine learning infrastructure, including improvements in the precision and recall of detection models.

“We’ve improved the precision and recall of all our models, and are seeing fewer restrictions/freezes as a result,” Levi said.

He added that while Coinbase will still enforce freezes imposed by court orders, sanctions, or legal compliance, the platform aims to minimize false positives and improve the speed of user resolution for erroneous cases.

Frustration Remains Among Coinbase Users

Despite the progress, many Coinbase users remain dissatisfied with their experience. In replies to Armstrong’s post, multiple users described being locked out of their accounts for extended periods.

• One user said they had been locked out for over two years with no resolution.

• Another user claimed they left the platform after dealing with an eight-month freeze.

• Others cited Coinbase’s lack of responsive customer support, describing how difficult it is to reach a live representative.

“At Coinbase, it is extremely hard to speak to a live customer service person,” one user wrote. “It can take forever to track someone down.”

Levi acknowledged that the user experience still falls short, admitting that even as a Coinbase customer himself, the system does not meet his own expectations.

Security Remains a Top Priority After Data Breach

Coinbase is also working to improve its internal security protocols following the disclosure of a December 2024 breach, in which overseas customer service agents were bribed by malicious actors. These agents allegedly leaked personal data, including government IDs and home addresses, later used in targeted phishing and social engineering attacks.

While Coinbase disclosed the breach in mid-May, the incident raised fresh concerns about insider threats and third-party vulnerabilities within the company’s global operations.

One X user responding to Armstrong claimed that a family friend lost BTC and ETH in a scam they believe was linked to the breach. These kinds of incidents have placed added pressure on Coinbase to not only improve account access and customer service — but also rebuild user trust.

Coinbase’s Scale and Influence in the Crypto Ecosystem

Coinbase remains a major force in the crypto industry, with over 100 million registered users and an increasingly prominent role as the primary custodian for several spot Bitcoin ETFs approved earlier this year.

While the company has been lauded for its regulatory compliance, public transparency, and U.S.-focused approach, it continues to battle challenges around user experience, customer support, and security infrastructure — especially as it expands globally.

Looking Ahead: Will Fixes Be Enough?

Armstrong’s announcement marks a meaningful step in Coinbase’s attempt to address customer grievances. However, industry observers note that the company’s longstanding reputation for poor customer support may require more than algorithmic upgrades to fix.

With the broader crypto industry seeking mainstream adoption, exchanges like Coinbase face rising expectations from both retail and institutional users.

“Improving tech is great, but customer service needs to scale too,” said one X user in response to the thread.

Conclusion

Coinbase’s reported 82% reduction in unnecessary account freezes is a promising sign that the exchange is taking user concerns seriously and investing in machine learning tools to automate and improve decision-making. Still, the platform faces residual mistrust following years of complaints and a recent data breach that raised serious security and support concerns.

As Coinbase continues to scale its operations and compete for global market share, its ability to balance automation with human-centric support and transparency will likely determine how successfully it retains — and regains — user confidence.