Cryptocurrency exchange Coinbase is under fire from a prominent on-chain investigator, ZachXBT, who claims the platform has been arbitrarily blocking accounts and covering up a recent data breach. This has led to significant financial losses for some users.
ZachXBT, known for tracking down crypto scams, says he was locked out of his account twice in the past month without explanation. He also accuses Coinbase of failing to disclose a security breach that exposed sensitive customer information, which he believes led to thefts.
“The future of money or more open, free, efficient”
>You have now locked me out of my account twice in the past month for no given reason (again today)
>You had customer data leaked you have yet to transparently disclose (lead to thefts)
I cannot recommend Coinbase as an…
— ZachXBT (@zachxbt)
This isn’t the first time ZachXBT has clashed with Coinbase. In the past, he’s criticized the platform for not reporting scam addresses and failing to provide adequate support against threats.
Between December 2024 and January 2025, ZachXBT tracked a series of scams that resulted in at least $65 million in losses. Scammers posed as Coinbase support staff, tricking victims into transferring funds to compromised addresses.
Coinbase’s History of Security Issues
Coinbase has faced criticism for security lapses and poor customer support in the past. In 2021, many users reported being locked out of their accounts for weeks, especially during times of high market volatility. This led to significant financial losses for some.
In October 2024, the company faced similar accusations, with users reporting account restrictions and security threats linked to support impersonation.
Growing Distrust of Centralized Exchanges
The current controversy may reinforce a growing trend of distrust among the crypto community towards centralized exchanges. While some users prioritize ease of use and regulation offered by platforms like Coinbase, others opt for decentralized solutions that allow them to maintain control over their funds.
ZachXBT represents a critical voice within the ecosystem, pushing for transparency and accountability from major players. Coinbase has yet to respond directly to the latest allegations, but if the company wants to maintain the trust of its advanced users, it will need to address these concerns with greater openness and promptness.
