Do not invest more money than you can afford to lose.
Coinbase, which is among the largest and most popular cryptocurrency exchanges, particularly for US clients, is getting some serious flak from users on Reddit, who vocally complain from being overcharged for transactions they did on the exchange. After keeping quiet for about a day or so and only occasionally responding on the threads, on Friday Coinbase has finally published an official blog post admitting to “erroneous charges”.
In the past several days, clients, mostly from the US and Canada complained about being double or even triple charged for cryptocurrency purchases they did previously. Others, who had their bank accounts or credit/debit cards connected to their Coinbase account, were charged for nothing. Some were immediately refunded by Coinbase, while other had to take the issue with their bank, after not getting a response from the Coinbase support. Some clients were charged relatively small sums of a few dollars, or fifty, but others were charged thousands.
One user, for example, was charged 17 times pm a $1000 purchase of ETH and expressed their concern of Coinbase being hacked. Another user, going by the name ipizi on Reddit, was charged $67 000 (50 times the price). “17X charges? NOPE. I just got hit with 50, count them 50 duplicate charges to the tune of $67k total,” ipizi wrote. “Already contacted my lawyer, closed my bank account, removed CB from everything etc. They will give me my fucking money back!! I made ALL of that money in crypto over the past 8 months. This is not good and I feel sick. I knew there is risk to lose money in this space, but not like this!! I may as well have burned it all. I hope Coinbase implodes!”
Several other users complained in various threads that their bank accounts have been drained and some have no money even to pay their rent.
Justin from Coinbase responded that they were currently investigating the issue and later clarified that the mess-up was due to the change in the Merchant Category Code (MCC Code) and the additional “cash advance fee” now charged by some banks and card issuers for trading with Coinbase.
“As a result, purchases that occurred between January 22nd, 2018 and February 11th, 2018 may have been refunded and reprocessed—resulting in erroneous charges”, Coinbase wrote in its official blog. “Some customers might experience a delay between the issuance of the new charge and the offsetting refund, but ultimately customers should only have a single charge on their card statement.” According to the Coinbase post, eventually all clients will be refunded for any erroneous charge.
For the time being, however, it seems that those promises cannot placate the angry customers, many of which even called Coinbase a scam and suspended their accounts, deleting all payment methods.
Coinbase has around 13.3 million clients in 32 countries and has total funding amount of over $225 million, 108 million of which were obtained in 2017.