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Wednesday, December 4, 2024

Coinbase receives backlash over ‘lazy’ VPN restriction

Crypto & NFTsCoinbase receives backlash over 'lazy' VPN restriction

Coinbase is going through criticism on social media after it was found that the US-based change is limiting the accounts of customers who entry the platform through a VPN.

Yesterday, EthHub co-founder Eric Conner complained that Coinbase locked his account after he tried to ship $25,000 in USDC. When Conner mentioned it was obvious that his use of a VPN was behind the restriction, many customers started to complain about the identical VPN-related points with Coinbase. 

As we speak, Coinbase product designer Scott Shapiro mentioned, “PSA: Don’t use a VPN to access Coinbase.” 

He added, “Attackers always use VPNs, so our risk models take that as a negative sign even if you’re legitimately using your own account.”

Customers on X, nonetheless, didn’t react properly to the change’s VPN stance. One person mentioned, “It’s our privacy right to use VPNs. If you’re telling us to not use VPN to access Coinbase, the choice is to just not use Coinbase.” 

PSA: Do not breathe when utilizing Coinbase.

Attackers at all times breathe 😳 , so our danger fashions take that as a detrimental signal even if you happen to’re legitimately respiration.

— 🌲vxH🐇rny 🌲 (@veH0rny) December 3, 2024

One other posted, “This just shows your incompetence. Users should not have to disable their VPN to use your exchange. Period.” Kraken’s chief safety officer mentioned, “You are making some of your users choose between financial freedom and physical safety.” 

Debanking dominated dialog on X this week with some evaluating it to Coinbase’s VPN stance. The corporate’s CEO Brian Armstrong provided his tackle the topic final Sunday, claiming that “anti-money laundering regulations have been a policy failure,” that prices roughly $213 billion annually and harms shoppers. 

In response to Yanowitz, Conner referred to as the strategy “a lazy implementation,” saying, “There are plenty of better ways to handle this than just nuking my account.”

After regaining entry to his account, Conner famous, “I’m lucky with my reach. Others, not so much…”

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