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Coinbase Uses AI to Cut Down Unnecessary Account Freezes by 82%

After a major upgrade to its AI infrastructure and customer service systems, Coinbase reduced unwarranted account freezes by 82%. CEO Brian Armstrong has made this a priority as the platform endeavours to re-establish users’ trust after a history of malfunctioning and recent data leaks.

The world’s one of the largest crypto exchanges, Coinbase, has achieved significant success in fixing a perennial problem for its users: sudden and unexplained account freezes. CEO Brian Armstrong recently said on X (formerly Twitter) that it has reduced these types of incidents by 82% due to internal changes made for the service.

According to Armstrong’s June 6 post, this has been an ongoing problem that “has gone on long enough” and “is unacceptable.” Making this right is a priority, he added in the post. “We’ve accomplished a lot so far, but there is still much to do,” he said, asking affected users to reach out to Coinbase Support directly.

The frustration around account freezes isn’t new. For years now, people have complained of being locked out of their accounts (sometimes for months at a time) for no reason. Many have left the platform altogether, citing lack of communication and delayed resolutions.

As part of its response, Coinbase has significantly improved its machine learning systems and customer service workflows. Dor Levi, a product lead who joined nine weeks ago, has been trying to fix the problems at Snapchat. Levi explained that they’ve made a big investment in improving accuracy while reducing false positives. “We are not there yet in terms of experience, and certainly not to my standards—but we are getting there,” he said.

In a statement, the company explained that while restrictions on other accounts have been greatly reduced, Coinbase will still freeze accounts when required by law. For example, in the case of fraud, sanctions and court orders.

Still, skepticism among users remains. Many customers commented on Armstrong’s X post, sharing their hardships of being locked for more than a year. Some others claimed that reaching out to a live support agent was one of the biggest obstacles in their case resolution.

Coinbase is taking steps to boost security after suffering a breach that exposed data of 70,000 customers. The incident in December 2024 of bribing overseas support agents was revealed in May 2025 and dealt a further blow to user confidence.


Conclusion

Coinbase’s substantial 82% reduction in unnecessary account restrictions represents a significant shift in the platform’s user experience strategy. Coinbase is focused on its customers, as trust takes time to build, but technology, transparency, and support will show their commitment. The exchange intends to overcome one of its ongoing challenges, with several upgrades still to come.

author avatar
Samarth
Samarth is a crypto and finance analyst at 4C, bringing sharp market insights and global economic commentary to every article.
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