Coinbase has debunked recent rumours that it had imposed weekly withdrawal limits on Bitcoin following social media claims that went viral this week.
On October 24, a user on social media platform X (formerly Twitter) alleged that Coinbase had restricted his Bitcoin withdrawals to a maximum of $5,000 per week. The user went as far as urging other users to withdraw their Bitcoin holdings from the crypto exchanges.
. @Coinbase is limiting bitcoin withdrawls. I just tried to send BTC from Coinbase to my cold wallet, and encountered a NEW $5k/wk withdrawl limit policy (implemented 10/13). I’ve been a Coinbase customer for 10 years. GET YOUR BITCOIN OFF EXCHANGES!!!!
— Colin Brown (@thecolinbrown) October 23, 2023
However, Coinbase refuted these rumours in a statement provided to Cointelegraph. A Coinbase spokesperson clarified that the reports of $5,000 weekly withdrawal limits are “inaccurate” and asserted that the exchange has no such policy restricting user withdrawals. They also clarified that the withdrawal process depends on the payment method the user is using to withdraw. The spokesperson advised users to refer to Coinbase’s official account limit and withdrawal policy for specific details.
This situation is reminiscent of events from earlier this year when both Opensea and ConsenSys had to deal with the fallout of false rumours about their operations. In February 2023, Opensea had to conduct an investigation about the source of the rumours that its users lost their NFTs on the platform to hackers.
Similarly, in May, ConsenSys faced rumours about MetaMask collecting taxes from cryptocurrency investors. ConsenSys clarified that the taxes pertained to specific products subject to taxation and were not a new development.
Meanwhile, these unfounded social media rumours about Bitcoin withdrawal limits came in the wake of technical difficulties experienced by Coinbase during periods of high trading activity.
According to Coinbase’s status page, the exchange began encountering issues processing trades around 6 pm UTC on October 23. Less than an hour later, Coinbase confirmed that the problem had been resolved, and their team was monitoring for any further disruptions.
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