Coinbase may, in its sole discretion: (a) refuse to complete, block, cancel or reverse a transaction; (b) suspend, restrict or terminate your access to any or all of the Coinbase Services; (c) deactivate or cancel your Coinbase Account; and/or (d) refuse to transmit information or instructions to third parties. We may take these actions if we suspect, in our sole discretion, that: (i) your Account has been or is being used for money laundering or any other illegal activity; (ii) you have engaged in fraudulent activity; (iii) you have breached this Agreement.
This provision gives Coinbase nearly unchecked power to cut off your access to your money and cryptocurrency with limited appeal rights, which could be devastating if triggered in error during a market event when you need to trade or withdraw urgently.
Coinbase's User Agreement gives the company broad unilateral powers to suspend accounts, freeze funds, and reverse transactions with limited notice, directly affecting your access to your money and cryptocurrency. In the event of Coinbase's insolvency, cryptocurrency held in your Coinbase account may be treated as Coinbase's property under bankruptcy law, leaving you as an unsecured creditor rather than the outright owner of your assets. You can withdraw your cryptocurrency to a self-custodied hardware or software wallet to avoid platform insolvency risk, and you can opt out of mandatory arbitration by sending written notice to Coinbase within 30 days of first accepting the agreement.