Coinbase Faces Criticism for Restricting Accounts That Access the Platform Via a VPN

Yesterday, EthHub co-founder Eric Conner complained that Coinbase locked his account after he tried to send $25,000 in USDC.

Coinbase is facing criticism on social media after it was discovered that the US-based exchange is restricting the accounts of users who access the platform via a virtual private network (VPN).

Yesterday, EthHub co-founder Eric Conner complained that Coinbase locked his account after he tried to send $25,000 in USDC. When Conner said it was apparent that his use of a VPN was behind the restriction, many users began to complain about the same VPN-related issues with Coinbase.

Today, Coinbase product designer Scott Shapiro said, “PSA: Don’t use a VPN to access Coinbase.”

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

However, users on X did not react well to the exchange's stance on VPNs. “It's our privacy right to use VPNs,” one user said. “If you're telling us to not use a VPN to access Coinbase, then the choice is to just not use Coinbase.”

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

Debanking dominated conversation on X this week with some comparing it to Coinbase’s VPN stance. The company's CEO Brian Armstrong offered his thoughts on the subject last Sunday, claiming that “anti-money laundering regulations are a policy failure” that costs around $213 billion annually and hurts consumers.

After his account was frozen, Conner posted, “Wasn’t @brian_armstrong just talking about debanking???”

Conner's account was eventually unfrozen, and he thanked his followers for their support. However, he also used the opportunity to highlight the plight of others who may not be as fortunate.

“I'm lucky with my reach. Others, not so much…” he posted.