Coinbase Pledges Refunds amid Apologies for Erroneous Charges

US-based crypto exchange Coinbase has admitted that some of its customers incurred multiple charges for a single purchase, adding that it would reimburse the individuals affected.

Coinbase has acknowledged that its platform erroneously charged users several times for a single order. The popular US-based crypto exchange said in a blog post it would make sure the affected customers get refunds. 

For several days, a glitch in the Coinbase system forced many clients to pay far more for a single purchase, with some even finding their balance at zero. The customers have voiced their objections online via Reddit and other forum sites. One client said that he was charged 17 times for the same buy order of $1,000. Another revealed that his problem was even more acute. He started a thread titled “17X charges? NOPE. I just got hit with 50, count them 50 duplicate charges to the tune of $67k total.”

He had the following to say about the situation:

“Already contacted my lawyer, closed my bank account, removed CB [Coinbase] from everything etc. They will give me my f**king money back! I made ALL of that money in crypto over the past 8 months. This is not good and I feel sick. I knew there is risk to lose money in this space, but not like this! I may as well have burned it all.”

A Coinbase representative named Justin replied to most of the threads. He responded to this particular customer:

“We're investigating an issue where some customers recently were charged incorrectly for purchases of digital currency with credit and debit cards. This is related to the recent MCC code change by the card networks and card issuers charging additional fees. We have identified a solution and any future purchases will not be affected by this issue.”

He added that any client affected by the problem would be fully refunded and urged injured parties to contact the Coinbase support team.

The exchange, whose user base has grown very fast, apologized for the situation in its blog post, saying it would work with banks, networks, and processors to fix the issue. Coinbase said the problems may have started between January 22 and February 11.

However, a user named Vincent Tapia said in a post comment today:

“I had over $300 in charges to my debit card and hope to see these reversed. All occurred yesterday.”

On Reddit, people have vented their anger at Coinbase’s explanations that Visa is to blame for the situation.

Some Reddit users revealed that even some bank representatives sometimes refer to Coinbase as a scam:

“Removing the card is NOT enough. I removed my card a week ago and yesterday they hit me with another double charge. My bank told me to cancel the card and get a new one. They also told me Coinbase is a scam and not to use their service anymore. Well done Coinbase, Scotiabank advisers are telling their clients that you guys are a scam.”

We’ll keep you updated on the situation.