Coinbase Unfair Practice Of Providing Fork Assets To Some Customers And Ripping Others’ Off (Updated)
This is a story about my experience with Coinbase.
I had BTC both in a wallet and a vault at Coinbase, at the time BCH forked. An email from Coinbase stated BCH would be delivered to customers in January of 2018. A Coinbase article, stated those customers with BTC in a vault would receive BCH in a regular wallet.
On December 19, 2017, a month early, Coinbase offered BCH to some customers and I gather not all since I didn’t receive all my BCH. There was a big press release where Coinbase stated it had provided BCH to customers with BTC at the time of the BCH fork. I received BCH for bitcoins in my regular wallet, minus about a 6% fee, but no BCH for bitcoins in my Coinbase vault.
The following email stated Coinbase was working on providing BCH for BTC held in their vault.
In February, I read the following article in the Coinbase/Gdax blog. The article stated, customers would receive BCH in a regular wallet if their BTC was in a Coinbase vault. Why didn’t I?
Coinbase/GDAX Frequently Asked Questions:
“If my Bitcoin was in my Coinbase account rather than my GDAX account at the time of the fork, will I still receive my BCH?
Yes, but the BCH amount you’ve been credited will appear in your Coinbase account rather than your GDAX account. Specifically, if your Bitcoin was in your Coinbase Vault at the time of the fork, your BCH will be credited to your BCH wallet in your Coinbase account. To access your BCH, log into coinbase.com where you will have the option to transfer to GDAX.” (GDAX | Bitcoin Cash FAQ https://support.gdax.com/customer/portal/articles/2911310-bitcoin-cash-faq)
I called Coinbase’s “Customer Service Department” and was told Coinbase would not provide BCH to customers who held BTC in their vaults. As advised, I opened a support ticket on hanging up.
For the first time ever, I received an immediate response from a Coinbase representative who said they were working on the issue:
That was the first and last email I received from Gabe, despite asking for an update.
When Coinbase released BCH to some of its customers on December 19, 2017, the following day on December 20, 2017, BCH skyrocketed to about $4100. Suspicion of insider trading forced Coinbase to conduct an investigation of itself. Since then BCH price fell over 70%.
Coinbase’s decision to provide BCH to some customers was financially harmful to other customers who were equally entitled to receive BCH but did not. For example, if Fidelity unilaterally decided to give dividends to some GM shareholders and not others, how would shortchanged GM shareholders feel about Fidelity?
Coinbase was not responsive or forthright. How many other customers are waiting like me? Or am I the only one?
Coinbase made over one billion in revenues last year yet it could not fork BTC in its own vault or deliver BCH in a wallet for those with BTC in a a vault as stated in their blog.
I ask that Coinbase do the right thing and honor its obligation and make reparations for the delay. Coinbase’s action of delivering BCH to some customers and not all was selective and of questionable legality and ethics. Since then the price of BCH fell over 70%. Coinbase is accountable for a decision that caused financial harm.
Coinbase’s behavior is everything cryptocurrency was made to eliminate. A good business use conflicts as opportunities to showcase its dedication to customer service and experience. Unfortunately that is not case with Coinbase.
Since regulators may not be able to hold Coinbase accountable, I need your help, the community. Please clap, share this post and do what you can to help. Why? This is a pattern with Coinbase that costs consumers to lose their investment.
Update: On the last day of the deadline for Coinbase to respond to CFPB, BCH was deposited in my vault account. Initially posted in comments, added here to thank everyone for their support.
