Coinbase Tells Users Not To Use VPN, Ignites Online Outrage

• Coinbase has come under fire after telling users they shouldn’t use the platform with VPNs enabled.
• The largest crypto exchange in the U.S. said bad actors usually use VPNs.
• EthHub co-founder Eric Conner shared that his account had been frozen after making a transfer with VPN enabled.

Coinbase has come under intense online criticism after an executive took to social media to claim that all users shouldn’t use the platform with VPNs on—as it will make them look like bad actors.

The comments came after EthHub co-founder Eric Conner shared that his account had been locked while using a VPN after trying to send $25,000 in USDC.

No VPNS on Coinbase

On Tuesday, Coinbase product designer Scott Shapiro took to X to tell everyone to keep away from VPNs when using the platform.

“PSA: Don’t use a VPN to access Coinbase,” he said . “Attackers always use VPNs, so our risk models take that as a negative sign even if you’re legitimately using your own account.”

This sparked genuine chaos online, as thousands of users took to social media to accuse the company of not caring about their customers’ safety.

“You are making some of your users choose between financial freedom and physical safety,” said one X user.

Another user commented that “VPNs protect privacy and privacy is a basic human right,” while another said the move showed “incompetence”.

Standing Strong

As the outrage continued, Connor shared that his account had actually been locked due to the fact he was using a VPN.

Some people, although a seeming minority, came to the defense of the crypto exchange’s approach to security.

“If you have a VPN on while transferring $25,000, of course, it’s gonna get locked,” wrote one user.

Jason Yanowitz, co-founder of Blockworks, said he assumed the company was “just trying to protect” Conner from being hacked.

The backlash doesn’t seem to have deterred Coinbase from retracting their comments yet.

In response to some of the backlash, Shapiro pointed users to another post stating customers should use “hardware security keys to secure your Coinbase account.”

Shapiro said it is much easier for “an attacker to compromise SMS 2FA or other digital methods, but compromising a security key is extremely difficult.”