ZachXBT Slams Coinbase for Account Lockouts, Undisclosed Breach Leading to User Losses

Crypto investigator ZachXBT has publicly criticized Coinbase, calling out the popular crypto exchange for repeated account lockouts and an undisclosed data breach, which he claims led to thefts.

In the latest tweet, the on-chain sleuth expressed his dissatisfaction and stated that Coinbase had locked him out of his account twice in the past month without providing an explanation. He also highlighted the company’s failure to transparently disclose a recent breach that exposed customer data, which allegedly led to financial losses for some users.

While acknowledging that Coinbase offers competitive annual percentage returns on stablecoins, ZachXBT concluded that he could not recommend the platform to others due to these unresolved issues.

Data Breach, Account Lockouts, and Lack of Transparency

ZachXBT’s comments come amid growing concerns about Coinbase’s handling of user security and support. Despite marketing itself as a secure, transparent, and regulated platform, the exchange has faced a series of challenges.

Coinbase, which went public in 2021, has long positioned itself as a gateway to the crypto world for both institutional investors and newcomers. However, incidents like the one ZachXBT described paint a different picture for more experienced users.

This isn’t the first time ZachXBT slammed Coinbase. He had previously lashed out at the exchange’s leadership for failing to report theft addresses, provide responsive support, or react swiftly to threats. His findings revealed that at least $65 million was stolen through these scams between December 2024 and January 2025.

The scammers allegedly impersonated Coinbase support using spoofed communications to trick users into transferring funds to compromised addresses. ZachXBT attributed the scams to Indian groups and low-level cybercriminals while criticizing Coinbase’s inadequate response.

Coinbase Controversies

This latest comment adds to a history of security-related concerns for the platform. In 2021, Coinbase users reported being locked out of their accounts for extended periods, often during times of high volatility in the market. Many of these users struggled to get timely support, leading to significant financial losses.

Coinbase faced accusations of account restrictions last October as well. During the same period, several users of the platform also reported security threats, with attackers impersonating Coinbase support. A researcher under the pseudonym ‘pcaversaccio’ lashed out at Coinbase’s position on VPNs, which was defended by the platform.

The exchange’s Senior Director of Product Management, Scott Shapiro, later clarified that VPNs alone don’t raise flags, but combined with suspicious activity, such as unfamiliar logins, they may prompt security checks.