Compass Investments

– The problem is now 82% fixed, and more improvements are coming soon. We will announce further improvements.

Armstrong also promises a faster response to customers whose accounts are frozen.

Armstrong notes that Coinbase was able to rectify the situation thanks to product employee Dora Levy, who was hired in April.

According to Levy:

If you follow crypto-Twitter news, you know how serious this problem was for users. I am a Coinbase user myself and the limits are not what I expected.

The goal is clear: account freezes should be rare, only in justified situations, mainly when required by law (e.g. sanctions or court orders) or to protect users (e.g. from fraud or account hacking). We are committed to doing the right thing.

Recent updates have made significant improvements without sacrificing our legal and regulatory obligations or our commitment to security.

To summarize:

We have now reduced the frequency of account blocking by approximately 82% , and new changes are being developed that will further reduce the frequency of account blocking.

We have made significant investments in our machine learning models, infrastructure, modeling, and teams. To date, we have improved the accuracy and responsiveness of all our models, so we are seeing fewer constraints/freezes.

We have put in place safety mechanisms and controls to stay ahead of the curve and keep things moving forward.