Coinbase is making significant strides to address one of its most persistent user complaints: account freezes. CEO Brian Armstrong acknowledged the issue as a top priority and shared recent improvements that are already showing results.
Major Cut in Unnecessary Account Restrictions
On June 6, 2025, Armstrong announced on X (formerly Twitter) that Coinbase has reduced unnecessary account restrictions by 82%. He attributed the progress to:
- Smarter machine-learning (ML) models
- Upgraded infrastructure
- Enhanced self-service verification tools
These changes aim to streamline the account review process and give users more control when issues arise.
Dor Levi’s Leadership and Automation Push
Dor Levi, who joined Coinbase just over two months ago, is leading the effort to fix the freeze problem. Under his guidance, the company has introduced:
- More precise ML systems to assess account activity
- In-app tools to verify user identity quickly
- New self-service flows that resolve most restrictions within hours
According to Coinbase, 82% of flagged accounts now regain access without the need for manual support.
Ongoing User Concerns and Broader Context
While the improvement is notable, not all users are satisfied. Some still report being locked out even after submitting full KYC documents. The broader context also includes a recent setback: a May data breach involving rogue support agents. Although no funds or passwords were compromised, it affected nearly 1% of users and reportedly cost Coinbase between $180 million and $400 million.
Despite that, Coinbase maintains that legal and compliance-related freezes will continue as required, such as for sanctions or court orders. However, they are working hard to eliminate avoidable restrictions.
Coinbase urges users who face non-compliance freezes to reach out to customer support. The company is also rolling out tools that let users resolve common issues without waiting for agent intervention.
