Coinbase Cuts Account Lockouts by 82% with Machine Learning Security Upgrades

Coinbase has significantly reduced user account lockouts by 82% following major upgrades to its machine learning models and security infrastructure. CEO Brian Armstrong and VP of Product Dor Levi confirmed these improvements, noting that unnecessary account freezes—which previously caused users difficulty accessing funds—have sharply declined in recent months. Now, account restrictions occur mainly due to legal requirements or for user protection, such as compliance with sanctions or suspected fraud. The reduction is attributed to enhanced backend systems and advanced machine learning tools, leading to improved crypto exchange security and better user experience. This progress comes amid increased scrutiny following a data breach related to customer support, which raised concerns about Coinbase’s reliability and custodial risks. While the move is expected to strengthen trust and competitive standing in the crypto trading market, the exchange will still comply with legal orders, leaving some custody-related risks unresolved. Crypto traders are increasingly urged to weigh custodial risks and consider non-custodial wallet alternatives for greater asset control. These developments are crucial for anyone deciding where to store and manage their digital assets, especially under heightened regulatory and compliance pressures.