What specifically causes Coinbase to cancel your account?

I've been using Coinbase for awhile, even throughout the numerous posts of them canceling accounts.

What exactly causes Coinbase to take action? Does it happen for deposits or withdraws? Or do they take notice when you actually cash them out into your bank account?

Also, are certain markets more likely to have issues over others?

Thanks in advance!


Comments


[5 Points] None:

Unknown


[3 Points] gramsadmin:

You should use helix or another bitcoin tumbler when going to or from coinbase. The markets have a "hot" wallet. A wallet that stores a majority of their bitcoins. Once coinbase see that wallet in the taint analysis of a transaction, they determine it either came from or was sent to a market and can cancel your account. Helix doesnt not have a hot wallet. The bitcoins are spread through thousands of wallets and these wallets are switched out every 2 weeks. So even if they did link one of the helix wallets to helix it would be irrelevant in a few days. Unlike most markets who keep the same hot wallet forever.


[2 Points] None:

This is one of those questions no one can really answer. Some people send straight to marketplace wallets without any issue, others have been suspended even when their bitcoin use was legal and legitimate.


[1 Points] CocaineNose:

<n/a>


[1 Points] iLoveDNM:

I use an intermediary wallet from coinbase, never had an issue. Just coinbase ~> electrum ~> market. When you transfer coins with coinbase there is a spot to put a comment, I always write something to the effect of "coins for LBC customer" there. Not sure where that info goes, but if coinbase is looking at it, there's my excuse.

Seriously, though, don't people just have local bitcoin orders just sent to their darknet wallet directly? That's going to suck when a seller's coinbase account gets banned due to this.


[1 Points] GrandWizardsLair:

ATGWUI, Coinbase has been canceling accounts with little rhyme or reason. Some of the canceled accounts have sent money to or from a darknet market; others have sold bitcoins to people who then used them on a darknet market; still others have had no clear connection to anything illegal nor have they been able to get a straight answer from Coinbase.

This tells the Grand Wizard that Coinbase execs don't want to be sharing a cell with Charlie Shrem. But it also suggests that tracking bitcoins back to a dodgy source is a dubious endeavor at best. Coinbase can cancel any account they want for any reason they want, or for no reason at all. But could an investigator use those same transactions to get a conviction or even an indictment?


[1 Points] letopseyturv:

I buy low and sell high, bought with bank and transferred to local wallet then a DNM. I even transferred money back into my CoinBase directly from a DNM. Nothing happened...yet