Coinbase Cuts Account Freezes by 82%, But User Trust Still on Shaky Ground

Coinbase is making strides to fix one of its most persistent pain points—account freezing. CEO Brian Armstrong announced this week that the company has reduced account restrictions by 82%, a significant move aimed at restoring confidence among users long frustrated by sudden lockouts and stalled access to funds.

But while the technical progress is real, the emotional damage among retail users may take far longer to repair.

A Persistent Problem Gets a Long-Awaited Fix

Account restrictions have been a sore spot for Coinbase users for years. From unexplained freezes to repeated Know Your Customer (KYC) requests—even after prior submissions—customers have aired grievances across social media, forums, and review sites. Some described being locked out for weeks with no clear resolution, sometimes during periods of market volatility.

“My account has been frozen for weeks despite submitting all required KYC documentation. This is causing real financial harm for many once loyal users,” said Hunter, a senior ecosystem development lead at Tron.

Recognizing the scale of the issue, Coinbase recently hired Dor Levi to lead the overhaul. In just nine weeks, Levi’s team revamped internal systems using improved machine learning (ML) models, added in-app self-service options, and upgraded infrastructure to better detect and resolve legitimate cases without unnecessarily locking out users.

“Account freezes should be rare and reserved for situations where they are legally required or necessary for user protection,” Levi said. “We’re working to ensure most restriction cases are resolved through efficient self-service tools.”

Cautious Praise from Industry Voices

The crypto industry has taken note. While many praised the improvements, some remain skeptical that Coinbase can fully recover from the reputational hit it's taken over the years.

“Love it, Brian. But I stopped using Coinbase because of the hoops I had to jump through to unlock my account,” said Mondoggg, cofounder of Resonance Lab.

Prominent crypto personalities such as Alex Becker also acknowledged that Coinbase’s efforts could position it as a more business-friendly platform—possibly even a “business bank account” for Web3 ventures.

Still, the tone from retail investors remains muted. Crypto YouTuber Wendy O remarked bluntly, “Damage is kinda done with retail,” noting that her large social audience continues to hold negative sentiment.

Ongoing Complaints Highlight Room for Growth

Despite Coinbase’s public commitment to change, not all users are convinced the system works as promised. Tony Gallippi, co-founder of BitPay, shared a current case in which his account remains restricted due to challenges proving ownership of a MetaMask wallet.

And others are still waiting for their issues to be resolved—despite the headline improvement figures.

This all underscores a critical point: while technical upgrades are essential, regaining user trust requires more than system tweaks. It demands visible consistency, transparency, and clear communication in every customer experience.