Coinbase to Improve Customer Service After “Account Security” Debacle
San Francisco-based cryptocurrency exchange Coinbase erroneously told about 125,000 of its customers that their security settings had changed.
The company, which started publicly trading on the Nasdaq in April through a direct listing, said that it resulted from an internal error.
Coinbase has spent “most of the weekend working with customers to make sure we can address their questions,” company spokesperson Andrew Schmitt told CNBC. “We believe the only way to build trust with our customers is to be transparent when we mess up.”
The exchange isn't really known for its stellar customer services and time and again ends up going down during high bouts of volatility, and its customers also complain of poor service.
Coinbase has more than 68 million users and holds $223 million in assets, according to the company's second-quarter financial results.
It's absolutely baffling how the Coinbase Pro interface has not improved in years and still freezes regularly.
— Alex Krüger (@krugermacro) August 28, 2021
Last week came the reports that Coinbase customers’ accounts were hacked and that they couldn't contact anyone from the company.
The security-settings email was sent to customers at 1:45 p.m. PT Friday by the company that read, “Your 2-step verification settings have been changed,” which prompted confusion and alarm among investors.
Coinbase then sent the second email that notification was “sent in error,” further explaining in a tweet that there was a “notification delivery issue.” “Our team immediately began work to identify the issue and stop these erroneous notifications,” it added.
According to the company spokesperson, the issue resulted from an internal error instead of a hack. He said,
“All of a sudden, the system just started sending stuff like a bug in the system, but it was not a malicious or third party error.”
The leading cryptocurrency exchange in the US said that it is improving its customer service by rolling out voice support this month and live chat later this year.
Meanwhile, shares of Coinbase (COIN) are trading at $262.66, finally trending up this month but way off of its debut day ATH $429.54.
Recently, the exchange said it had stockpiled $4 billion in cash to prepare for a “crypto winter.”