TechFlow news, on June 29, Coinbase product lead Dor stated on X that this week the company handled a fraud case. After deciding to suspend a transaction and request additional information from the user, Coinbase chose to reject the transaction and restrict the account due to being unable to contact the account owner, aiming to prevent unauthorized account access and withdrawals. However, this caused frustration for a legitimate user who had to go through the account recovery process. Coinbase is working to balance this situation—account restrictions have already been reduced by over 80%, fraud models have been optimized and improved by about 20% in recent weeks, and infrastructure upgrades are underway to continuously retrain multiple models.
Coinbase CEO Brian Armstrong responded that it is crucial to find the right balance between reducing account restrictions and ensuring customer security.
