Locked Out No More? Coinbase Cracks Down On Account Freezes

Coinbase has cut the number of unnecessary account freezes by 82%, the exchange’s CEO announced last week. It was a problem that many users said went on for far too long. Now the company says it’s close to fixing the worst of it, but some customers remain wary.

Account Freezes Drop Dramatically

According to a June 6 post on X by CEO Brian Armstrong, Coinbase has reduced unwanted freezes by 82% so far. He said the change is a top priority and that more improvements will roll out soon. Short freezes are one thing. Months-long lockouts are another. Many users reported being locked out for several months at a time.

Account freezing has been a major issue at Coinbase for longer than is acceptable. I could list a bunch of the underlying reasons why it got so bad in the first place, but what’s more important is that we’ve made it a priority to fix, and we have been making good progress. Shout… https://t.co/Emrq6KQhpD

— Brian Armstrong (@brian_armstrong) June 6, 2025

New Team Member Takes Charge

Based on reports from inside Coinbase, most of the progress comes from the work of Dor Levi. He joined the product team nine weeks ago with a clear goal: stop freezing good accounts. The company invested heavily in its machine learning models. Those upgrades seem to have paid off. Coinbase says its new systems catch more bad behavior while letting normal trades go through.

I joined @coinbase 9 weeks ago with a vital goal: fixing unnecessary account restrictions.

If you’re on CT, you know how significant this issue has been for users. I myself am a Coinbase user and our restriction experience is not meeting my own bar.

The goal is clear: Account… pic.twitter.com/zvGuM3QSZi

— Dor (@dorvonlevi) June 6, 2025

Users’ confidence was also shaken by a data breach that affected more than 70,000 accounts. At least some overseas service agents were bribed last December to hand over customer ID photos and home addresses.

The breach wasn’t disclosed until mid-May. That gap has frustrated many. One user even shared a story of a family friend losing Bitcoin and Ether in a scam they believe was linked to the hack.

Coinbase will still comply with court orders and sanctions that require account freezes, Armstrong and Levi said. Those freezes are not part of the 82% reduction. They are a separate matter entirely. The company needs to meet legal rules in the US and abroad. Users who believe their freeze is tied to those rules should contact support for details.

Some users say it’s nearly impossible to reach a live support agent. One X commenter wrote that tracking someone down “can take forever.” Another said he has been locked out for two years. Armstrong asked any customer with a frozen account to get in touch with support. But if users can’t make a call or start a chat, even the best model won’t help them feel heard.

Coinbase is the top custodian of spot Bitcoin exchange-traded funds. Cutting unnecessary freezes is a step forward, but real trust takes time. Users will want clear updates on how the new system works, and they’ll want proof that their data is safe. If Coinbase can keep its word, it may finally calm the people who felt locked out for far too long.

Featured image from ARZDigital, chart from TradingView