Complaints Against Crypto Exchanges Rise in US as Coinbase Tops Most Received

Complaints Against Crypto Exchanges Rise in US as Coinbase Tops Most Received

As popularity in cryptocurrencies has increased, so too have complaints against major U.S. exchanges that house them.

According to the Consumer Financial Protection Bureau, of the top three crypto exchanges operating in the U.S., Coinbase has received the most complaints in year-to-date terms.

Around 1,060 complaints have been registered against Coinbase, ranging from domestic and international money transfers, digital wallets, and foreign currency exchange, according to the bureau’s Consumer Complaint Database.

Residents from California had the largest gripe against the U.S.’s most prominent exchange with 131 complaints, while residents of New York followed closely behind.

Washington, Virginia, Pennsylvania, Georgia, Texas and Florida also registered a larger share of the total complaints received against Coinbase.

Binance.US, operated by BAM Trading and a separate entity from Changpeng Zhao’s Binance, has received around 184 complaints in the same categories while Kraken, another major exchange, has received 34.

The complaints stretch from the end of June last year through to this year and capture a time when the market was beginning to shake off prior bearish sentiment as prices began to recover from a particularly nasty sell-off in May 2020.

By comparison, the same period of the previous year saw far fewer complaints, with Coinbase clocking around 241, Binance with 17 and Kraken receiving none, the Bureau’s data shows.

Coinbase, Kraken and Binance.US have yet to reply to a request for comment from CoinDesk.