Rumors are circulating online that the leading crypto exchange is troubling customers with their withdrawals.
CryptoWhale, in a tweet on Monday, reveals that leading US crypto exchange Coinbase is trying to suppress Redditors’ comments showing that they cannot withdraw from the platform.
“CoinBase is deleting Reddit posts & comments about customers not being able to withdrawal funds,” CryptoWhale tweeted with screenshots drawing attention to the situation.
CoinBase is deleting Reddit posts & comments about customers not being able to withdrawal funds. pic.twitter.com/Gy1Yh21EL3
— CryptoWhale (@CryptoWhale) July 18, 2022
Several tweets have surfaced on the microblogging platform of shock restrictions on Coinbase accounts. Notably, several users reveal that they have not been able to withdraw to fiat in recent days.
Twitter Users
A Twitter user with the pseudonym “Life In Our Fifties” tweeted last Friday, “Is it just my account or has Coinbase taken the ‘Cash out’ option off of all accounts?”
Is it just my account or has Coinbase taken the “Cash out” option off of all accounts?
— Life In Our Fifties (@OurFifties) July 15, 2022
Damoz tweets today, “I can’t withdraw in fiat.”
I can’t withdraw in fiat
— Damoz (@Damoz15) July 19, 2022
@abdul12345591 Says: “@coinbase my account has been restricted for no reason, I’ve sent multiple tickets but still haven’t received any feedback, kindly look into it for me.”
@William68318296 comments: “Why is the cash-out option no longer working?”
@co_gfc says: “yall gettin sketchy with the withdraw process.”
It is worth noting that the latest crypto winter has been especially tough for the leading crypto exchange, which went public in 2021. Notably, Company shares have tanked by over 80% from highs of $355, now trading at around $58.
Meanwhile, at the end of June, investment bank Goldman Sachs in a research note, revealed that they expected Coinbase stock could fall by another 60%. According to Goldman Sachs, their immediate target for the stock is now $45.
Moreover, the company also recorded its first quarterly loss of about $430 million in Q1 2022. Consequently, in the face of increasingly difficult market conditions, the exchange laid off over 1000 staff to ease costs.
Additionally, data from Mizuho Securities USA last Thursday reveals that the exchange now ranks 14th by trading volume. Notably, this is a very worrying statistic considering that at the peak of the bull run, it ranked 4th.
Amidst the flurry of concerns this year, Peter Brandt, a veteran analyst, has often advised users to take their funds off the exchange. Brandt has warned that Coinbase going bankrupt, favored the exchange and stripped users of claims to their funds. Notably, Brandt has called out the exchange as a scam.
Recall that Coinbase published the financial report for the first quarter of 2022, which saw the San Francisco-based exchange record its first net loss of $430 million since the company went public in April 2021. According to the disclosure made by Coinbase in the Q1 2022 financial report, the exchange noted that if it goes bankrupt following its losses, it would hold customers’ assets as its property and consider them as general unsecured creditors.
It is worth noting that in the space of 2 months, three crypto firms have filed for bankruptcy owing to the plummeting prices of crypto assets. Should the latest speculations prove correct, Coinbase would be joining the likes of Three Arrows Capital, Voyager, and Celsius, who have all filed for bankruptcy.
Please also remember that Coinbase has not only reduced its employees due to crypto winter but also has turned off its affiliate program.
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Source: https://thecryptobasic.com/2022/07/19/has-coinbase-halted-customer-withdrawals-as-users-reportedly-facing-withdrawal-issues/?utm_source=rss&utm_medium=rss&utm_campaign=has-coinbase-halted-customer-withdrawals-as-users-reportedly-facing-withdrawal-issues