You have only $2 to your name now and can’t afford food or bills? No big deal! Sorry for your loss.
Some Coinbase account holders are currently in this position, as a glitch has caused the exchange to withdraw an excessive amount of money from its user’s linked bank accounts. We all knew jumping in the cryptocurrency market was extremely risky but did we ever imagine this? Not the slightest.
Many users have taken to various forums saying:
“Already contacted my lawyer, closed my bank account, removed CB from everything, etc. I knew there is risk to lose money in this space but not like this! I may as well have burned it all. I hope Coinbase implodes.”
Another customer on a Reddit forum states that she is now broke and cannot afford rent, food, gas, and her bills.
This all seems terrible, but there have been some questions and flags raised by other cryptocurrency investors in response to this issue. One person responded, “you only had 1.5k in savings and invested 20% of that in crypto? I always thought it’s a myth that Americans don’t save any money but looks like its true.”
I mean, he’s got a point. Still, accidentally charging your users 5 to 17 times what was initially authorized is ridiculous. We’ve all been charged double at a restaurant or on a phone bill once or twice in our lives – right? However, 5 times the said amount is unacceptable.
The company has been quick to respond to most of these forum posts. In response to the customer contacting his lawyer, ‘Justin’ from Coinbase said:
“We’re investigating an issue where some customers recently were charged incorrectly for purchases of digital currency with credit and debit cards. This is related to the recent MCC code change by the card networks and card issuers charging additional fees. We have identified a solution, and any future purchases will not be affected by this issue. We will ensure any customer affected by this issue is fully refunded. We expect this to happen for customers automatically through their bank. If you believe you were affected by this issue. Please contact support at support.coinbase.com.”
I’m sure if you’re an American reading this post, you understand how long it takes Coinbase to actually respond back to you – it’s ridiculous. The company has raised over $225.3 million USD in funds to date and has over 13 million customers. The lack of customer support and promptness is entirely unacceptable for a company of this size, especially considering the high fees they charge their users.
Coinbase responded to users on Twitter (NASDAQ:TWTR) last night blaming Visa stating they were reversing and recharging transactions. To me, this makes no sense as many users that I’ve seen have claimed that funds were taken from their actual bank accounts and not their Credit Cards.
Since many major banks in the U.S have banned cryptocurrency purchases, individuals have had to link their actual bank accounts to Coinbase. There were copious amounts of backlash as to why users would use their credit cards to buy crypto, but it doesn’t seem that silly now, does it? Sure, there will always be individuals who irresponsibly spend their money – have you been to a Casino? Credit cards being overdrawn isn’t the end of the world, but drained bank accounts could potentially leave individuals without basic necessities like a place to live and food.
As Coinbase figures all of this out, I’d recommend if you use their service to double check your bank or credit card statements. For now, I’d disable your bank account from their platform.
What are your thoughts on the matter? Recommend another easy-to-use crypto echange? Comment below!
Featured Image: OnlineMasters