A Chinese crypto investor’s expertise with Coinbase has sparked heated discussions on-line. It sheds mild on the dangers and laws related to digital asset investments. The consumer, who shared their story on Xiaohongshu, detailed a tumultuous journey with Bitcoin (BTC) and the U.S. trade. Moreover, he raised issues about account safety and property rights.
Coinbase Liquidated Chinese User’s Bitcoin Holdings
In 2017, the investor, known as the unique poster (OP), allotted roughly ¥200,000 in financial savings to Bitcoin. Their preliminary funding technique was easy: “Buy BTC and hold long-term, either it soars or crashes.” However, the unpredictable nature of the crypto market quickly led the OP down a path of frequent buying and selling and asset diversification. This resulted in vital monetary losses. By early 2018, the OP’s holdings had dwindled from 2 BTC to 0.5 BTC because of speculative trades in varied altcoins.
After enduring the unstable market, the OP consolidated their remaining belongings again into BTC and held onto it till 2020. Despite a quick restoration through the 2021 Bitcoin surge, additional buying and selling between BTC, USDT, and different tokens resulted in a decreased holding of 0.23 BTC. Concerned concerning the safety of platforms like Huobi and Binance, the OP transferred their belongings to Coinbase in late 2021.
However, the state of affairs took a dire flip in June 2024 when the OP found their account was inaccessible. Upon contacting the trade’s customer support, they discovered that their account had been closed and their Bitcoin offered and transferred to an establishment in Wyoming. The cause cited was that the account had been deemed “unclaimed property” because of inactivity.
However, the OP asserted they’d logged in as lately as February and March 2024. CEX’s coverage, aligned with state legal guidelines, considers accounts inactive for 3-5 years as unclaimed property. Hence, the OP’s login proof was dismissed by customer support, which suggested them to contact Wyoming’s Unclaimed Property Division.
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Is A Recovery Possible?
The above-mentioned revelation sparked outrage and sympathy amongst fellow crypto fans. One Reddit consumer emphasised the significance of sustaining management over one’s digital belongings..they wrote, “Again proving, Not your keys, Not your coin.” This sentiment was echoed by the OP, who admitted, “Very true.”
Another consumer instructed potential authorized recourse towards the U.S.-based crypto exchange. They wrote, “As a public company, there are many ways to deal with them. 1. Sue Coinbase’s management and company, demanding returns and compensation. 2. Write complaints to the SEC, FINRA, and PCAOB. They can easily penalize Coinbase with millions in fines.”
A contrasting perspective was provided by one other consumer, who defined the authorized framework within the U.S. Moreover, they indicated {that a} full restoration was certainly potential although the OP believes he has “zero chances” of getting the funds again. They wrote, “In the U.S., if a financial account is inactive for two years, it automatically goes to unclaimed property. No one is robbing you. You can just apply to get it back.”
Indeed, the silver lining on this ordeal is the opportunity of reclaiming the unclaimed property. “Unclaimed property can be reclaimed as long as you can prove your identity. It’s actually meant to protect everyone,” assured one other commenter. They highlighted that the system is designed to safeguard belongings fairly than confiscate them completely.
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