Coinbase Withdrawal Scandal: WhalePanda Likely to Take Legal Action
Along with the growing popularity of Coinbase due to the skyrocketing interest of the public in cryptocurrency trading, it was not able to dodge an issue concerning the slow handling of withdrawal requests.
Commentator and cryptocurrency trader WhalePanda took his rage to Twitter after the cryptocurrency trading platform allegedly ‘locked up’ his own funds.
Whalepanda tweeted on January 4, 2018, the social media personality claimed to have requested a withdrawal to his Euro-account at SEPA bank.
However, it has almost been a month since the initial request, yet the transfer did not materialize.
The trader also expressed his outrage and announced that he was close to taking “legal actions”.
Update on @coinbase SEPA Withdrawal: Still nothing, no reply from support. On /r/coinbase you can find 100's of posts by people missing withdrawals from the 12th. Don't know what went wrong that day, but it looks really bad. I'm close to taking legal action @brian_armstrong.
— WhalePanda (@WhalePanda) January 4, 2018
Withdrawals made to SEPA generally just takes about 48-36 hours to clear. This means that the three-week delay of transfer could possibly be an internal problem on Coinbase end.
This was not the first time Coinbase was entangled in issues concerning massive delays with withdrawal.
It can be recalled that there was a mass exodus from Coinbase around July 2017 when announced that it would not honor Bitcoin Cash.This has prompted Coinbase users to transfer their funds to wallets where it would be possible for their funds to be credited for Bitcoin Cash tokens.Thus, the mass withdrawal has resulted in a 12-hour delay.
Part of the blog post published on July 27, 2017, reads:
“Our policy is to support only one version of a digital currency. In order to determine which fork to support we look at factors such as the size of the network, market value, and customer demand. We make this decision carefully because safely supporting a new digital currency requires significant work for many teams.”
Such issue is not isolated to Coinbase as other cryptocurrency exchanges also tend to encounter scaling issues especially with the sudden surge in interest from potential investors to use the platform to get into trading investment.