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Did I lose money with Coinbase Wallet app hack with this scenario

(Last Updated On: October 16, 2021)

 

IMPORTANT UPDATE NOTE: Please ignore this post as somehow balance in my Coinbase Wallet went from $0 back to what should it have been. I have tansferred all % back to my Coinbase account. A couple of lessons for this 

Do not use XRP anymore to transfer into Coinbase. Somehow over the last few weeks, they made it not tradeable in Ontario.

There is no easy way to convert from one to another in Coinbase which Binance has! As a resolution, I now have to transfer back the XRP into my Binance. From there, I transfer back from Binance to Coinbase using a coin that both exchanges use (and is tradeable) with a a low transaction fee. For me in Ontario, Bitcoin BCH is not tradeable

https://crypto.com/defi/dashboard/gas-fees

Do not use ETH defi based coins since they have huge gas fees as you can see in the link above! Here are some examples:

https://blog.nano.org/cryptocurrency-fee-comparison-which-crypto-has-the-lowest-fees-4e9118590e1f

From what I see, some decent options are Bitcoin Cash, Stellar, or Dash. Whatever you choose, make sure it is tradeable on Coinbase Pro for your region!

In summary of all this fiasco

I still don’t trust nor recommend Coinbase or CoinbasePro. With their stupid coin restrictions with what is tradeable to converting limits with next to zero non human support. Also their commission fees could make automated trading not profitable  as well. As a result, I think I am going to just focus on Kraken. I will try to find a new way to adjust to Kraken’s low volume/liquidity on certain coins.

The following is now historical and to be ignored:

See the sequence of events on using this confusion dogs breakfast  called Coinbase wallet and their other apps

You need the Coinbase Wallet mobile app to transfer/convert one coin to another including non tradeable like XRP.

Coinbase.com → Coinbase Wallet-→ Coinbase.com or Coinbase Pro

If transferring between with Wallet on XRP, it will use XRP blockchain to make the transfer happen. So whatever you use, it will use the underlying coin blockchain to complete the transaction (e.g. transfer)

After the transfer of XRP walle address, I got this confirmation:
Congratulations! You have successfully sent XXXX XRP to XXXX. You can view transaction details in your Coinbase account. To facilitate this transaction, you paid 0.0000 XRP ($0.00 CAD) in network fees.
This withdrawal is being sent to an address (XXXX) that you haven’t previously used.

My question is where did this mysterious wallet ID address come from??

No live chat or phone support (only for USA) for situations like this!

Ticket created with:

HI I just transferred XRP to some unknown wallet id. The XRPScan was competed. I have no association to this wallet so I only wanted to transfer from my Coinbase to the Coinbase Wallet with XRP to convert to USDT. The transaction was imcompleted with some weird wallet I have no association with. Where did this wallet id come from and why was it allowed to happened with out proper safe guards or confirmation in place? I assumed that this was how this was done from within all Coinbase apps including the Coinbase. Wallet. I will expect full recovery of this transaction to be fully reversed by Monday morning. I will have no choice to file a formal complaint with my local government for consumer affairs and financial regulators. The amount was for $xxx USD and XRP wallet id is xxxx As said, I have no idea how this wallet ID came from within your app. This appears to some sort of hack.


Email response was

Response Case#xxxxx

 

Thank you for contacting Coinbase Support. Our team is working hard to answer customer inquiries in a timely manner, but you may experience longer response times. If you need a quick answer to your question, please visit our Help Center for more information and help.

We appreciate your patience during this challenging time and hope you are staying safe.

Thanks,
Coinbase Support

This was  deflective and  passed the buck.

Another ticket response about transferring to XRP.  I have no way to convert to other wallets from XRP so it is stuck. Here was their response:

 

Thanks for contacting us.

Although sells and withdrawals are not available in your country on our platform, you can still send your crypto to an external wallet or exchange.

To send/receive cryptocurrency, please follow our help article:
https://help.coinbase.com/en/coinbase/trading-and-funding/cryptocurrency-trading-pairs/how-to-send-and-receive-cryptocurrency

Our help article captures the instructions for both web and mobile for your convenience.

Please feel free to reply back to this email if you have any further questions about this issue.

Regards,
Coinbase Support

Both responses were responded within hours.

I will update once there is better resolution.restrictions on transfers and conversion within their Coinbase and Coinbase. If using non tradable assets  like XRP, you will run into these problems. I do not recommend Coinbase with past problems due trustworthiness, credibility, and trash with slow support.

They did reply with this deflect pass the buck response:

Thanks for contacting us.

If you would like to file a formal complaint with Coinbase, please contact us by using this form: https://support.coinbase.com/customer/portal/emails/new?t=793660.

For more details, visit our help page here: https://support.coinbase.com/customer/en/portal/articles/2944385-how-to-send-a-complaint-uk-and-eu-only-?b_id=13521.

We appreciate your patience and understanding with this matter. Please feel free to reply back to this email if you have any further questions about this issue.

Regards,
Coinbase Support

It is not like they really want to take ownership to fix the problem! Nor do they take any form accountability to help.

Despite the negative news on Binance, I will say their security was quite paramount which means I have never had problems like this with my 2+ years of being with them!!

 

Here is some of the bad press they have been getting

Here’s How to File a Complaint Against Coinbase in your Respective State from CoinBase

 

Anyone in Ontario have any luck filing a complaint with the Ontario Securities Commission? I think it’s my next option. from CoinBase

THis was the article that booted Binance out of Ontario now we have further complaints with Coinbase

Found on a Google question snippet about OSC (Ontario Securities Commission)
Is Coinbase registered with OSC?
There are hundreds of crypto exchanges that facilitate trades for Canadians, but some of the most popular platforms are foreign exchanges such as San Francisco-based Coinbase and Gemini, as well as Cayman Islands-based Binance. To date, however, none of these three platforms has completed its registration with the OSC.May 25, 2021

 

Coinbase appears to be a frikking joke. Under their complains page at

https://help.coinbase.com/en/coinbase/other-topics/other/how-to-send-a-complaint

Their address of  Coinbase Inc., 82 Nassau St #61234, New York, NY 10038. points to quite possibly a UPS PO Box! Do a street map to see what I mean. Who is going to tak a company seriously as financial institution who uses a PO Box for complaints! This is how they treat customers! And they are listed on a major USA stock market??

 

If you do decide to formalize a complaint with a regular like mine at the OSC

https://www.osc.ca/en/about-us/contact-us

Here is what can be expected:

Service commitment

The OSC is committed to accountability and transparency in the way in which it delivers services to the public. When you deal with the OSC, you can expect service from knowledgeable and professional staff in keeping with our service commitment to you.

Knowing how Ontario government agencies work, I have no faith as these wall funded organization are a joke but will gladly extract tax dollars out of you.

NOTE I now post my TRADING ALERTS into my personal FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!

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