Kicked off Coinbase and Kraken suspended my account

[Mc_ppka_tp]

So about 2 weeks ago I decided it was time to get an account setup and start learning crypto so I can make some CN purchases. I setup a Coinbase account and had it linked to a checking account at my credit union and a debit card to the same account. I got verified and used my debit to do my first transfer of $50 and bought USDT as a start. Once my limit recycled I deposited another $50 and bought USDT again. But when I tried to use my linked (through Plaid) bank account Coinbase froze my account and after a review suspended it and then closed it. They wouldn't tell me what I did wrong just told me to transfer my money out.

So I started a Kraken account. Uploaded pics of drivers license and selfies. Linked my checking account again seeded the account with $150. I haven't bought any crypto I've just let the cash sit there for a few days. Tonight I tried to add $300 to the account from the bank account I have linked and I received a notice from the app and an email stating that my account has had temporary restrictions placed on it and I cannot transfer money in or out. I'm guessing that Kraken is going to boot me out too and close my account.

Suggestions on what I might be doing to cause this? I'm getting frustrated with this whole process and I'm not sure where to go next to get started since coinbase/kraken were the only exchanges I thought about trying.

 

[RetCurious]

I'm not familiar with either of those 2 but you have my sympathies.
It seems like it's getting harder to do things with our money.
Maybe this will help.

Why is my account restricted? | Kraken

Support Center for Kraken.com | Bitcoin & Cryptocurrency Exchange | Bitcoin Trading Platform

support.kraken.com

or this

Why is my Kraken deposit or withdrawal on hold?{Hold Money}

If you notice your funds are on hold in Kraken, it usually means there is a temporary restriction on withdrawals or usage⭐1-830-745-0056 This can feel frustrating, but in most cases, it is part of ...

krakenhelpline.futurefund.com

 

[Smiter]

So about 2 weeks ago I decided it was time to get an account setup and start learning crypto so I can make some CN purchases. I setup a Coinbase account and had it linked to a checking account at my credit union and a debit card to the same account. I got verified and used my debit to do my first transfer of $50 and bought USDT as a start. Once my limit recycled I deposited another $50 and bought USDT again. But when I tried to use my linked (through Plaid) bank account Coinbase froze my account and after a review suspended it and then closed it. They wouldn't tell me what I did wrong just told me to transfer my money out.

So I started a Kraken account. Uploaded pics of drivers license and selfies. Linked my checking account again seeded the account with $150. I haven't bought any crypto I've just let the cash sit there for a few days. Tonight I tried to add $300 to the account from the bank account I have linked and I received a notice from the app and an email stating that my account has had temporary restrictions placed on it and I cannot transfer money in or out. I'm guessing that Kraken is going to boot me out too and close my account.

Suggestions on what I might be doing to cause this? I'm getting frustrated with this whole process and I'm not sure where to go next to get started since coinbase/kraken were the only exchanges I thought about trying.

Mofos. Just when I thought I was getting in on this Crypto BS, they pull me back out.

 

[BBA1969]

I had doubts for a long time due to a lack of knowledge and I'm by no means a crypto expert now, but I think you might have to add a non-custodial wallet too. These let you do whatever you want to do with your crypto. Oh and try BTC, no gas money and multiple coin hassle!

My set-up: I send money to my Kraken exchange. Once I'm placing an order, I buy BTC and I send it to the Kraken wallet. From here, I handle the payment to the vendor.
The first time was a little stressful, but after that it’s been easy and seamless. It's probably not the cheapest option but as a beginner, it sure is as simple as it gets.

 

[JimGainz]

Coinbase don't play around

 

[Standish]

You might want to set up an exodus wallet where you have more control over things. Just be aware that buying crypto through exodus may incur greater fees.

 

[sofaKINGnoob]

So about 2 weeks ago I decided it was time to get an account setup and start learning crypto so I can make some CN purchases. I setup a Coinbase account and had it linked to a checking account at my credit union and a debit card to the same account. I got verified and used my debit to do my first transfer of $50 and bought USDT as a start. Once my limit recycled I deposited another $50 and bought USDT again. But when I tried to use my linked (through Plaid) bank account Coinbase froze my account and after a review suspended it and then closed it. They wouldn't tell me what I did wrong just told me to transfer my money out.

So I started a Kraken account. Uploaded pics of drivers license and selfies. Linked my checking account again seeded the account with $150. I haven't bought any crypto I've just let the cash sit there for a few days. Tonight I tried to add $300 to the account from the bank account I have linked and I received a notice from the app and an email stating that my account has had temporary restrictions placed on it and I cannot transfer money in or out. I'm guessing that Kraken is going to boot me out too and close my account.

Suggestions on what I might be doing to cause this? I'm getting frustrated with this whole process and I'm not sure where to go next to get started since coinbase/kraken were the only exchanges I thought about trying.

If you buy crypto from a regulated KYC exchange like Coinbase or Kraken and then send payment to a vendor's crypto address that is blacklisted without doing any hops to different wallets or swaps to a different crypto beforehand your account will be frozen/shutdown.

 

[Mc_ppka_tp]

So I did not get as far as to send payments out of either of these accounts. I all had do prior to my termination/suspension was to transfer funds from a linked bank account to the exchange. In the coinbase account I purchased $100 of USDT and left it sitting in the exchange and in Kraken I just had the money sitting waiting for the 72hr holds to complete.

 

[FartfulCodger]

Regarding the Kraken restriction, maybe it really is just temporary, like they said? I know that when I transfer money from my checking account into Kraken, Kraken tells me I won't be able to transfer it out for 7 days. I can't imagine why they'd prevent you from transferring more money into Kraken, though.

 

[WYSiWYG]

The temporary hold doesn't seem out of the ordinary - most do this when you set up or link a new account.

That said, have you double checked with your actual bank?

I don't see where you mention sending any payment out, so not sure you have been flagged there - but your bank may see it as suspicious activity and kill it.

 

[ZippityDooDah]

Some tips when opening an exchange account:

1. It's very similar to opening a bank account or credit card. They're going to perform identity verification (KYC), soft pull your credit report, check your LexisNexis report, possibly even look at Chexsystems and/or Early Warning Services (EWS). If there's anything slightly off in any of those reports, you're likely to have problems (especially if there's any history whatsoever of negative balances, dishonored payments, going over credit limits, etc.).

2. Never, ever, fund your account with a debit card. In fact, you should never, ever use a debit card in everyday life. Fund via ACH transfer only. Some exchanges (Kraken for sure) use Plaid as their intermediary to handle bank transfers, so if you've ever had any issues with Plaid, or bank at a bank that doesn't support Plaid, you're going to have problems.

3. Just let your funds "marinate" in the exchange account for a bit. Don't immediately try to buy crypto—this is where most people run into problems. It's best to wait at least a week or more once the funds have settled and are available. Expect there to be a hold on your first transfer, and immediately trying to do something with funds just released from a hold on a brand new account is a huge red flag to these exchanges.

4. When you do finally buy crypto, same thing as above, let it sit in your account for a couple of days (longer if you can).

5. When you transfer crypto to your self-custody wallet, don't empty out the exchange account, leave some of it behind.

There's a lot more to it, and the guides in the Crypto Corner section will also help, but the most important thing to remember is making your first purchase with crypto is not a fast process, and trying to rush it is likely going to cause problems.

 

[Mc_ppka_tp]

The temporary hold doesn't seem out of the ordinary - most do this when you set up or link a new account.

That said, have you double checked with your actual bank?

I don't see where you mention sending any payment out, so not sure you have been flagged there - but your bank may see it as suspicious activity and kill it.

From my bank's side they saw the initial transfer of $150 to seed the account. I do not see on my account the $300 dollar transfer I attempted this morning to Kraken that seems to have started this mess.

 

[Whiynot20026]

Try Trust Wallet. It was fantastic. You can buy and send there.

Bill

 

[Jfrick11]

Not sure this will be at all helpful.... But I use CB and EX, and have had some problems with CB. Things were great for over a year and then boom, one day I had restrictions, lower limits, holds, etc. I called and they told me I had to reverify myself. I jumped through a few hoops, they lifted the restriction but my limits were still really low (went from. 5,000/day instant to 50/day with holds) and they couldn't explain why.
Next transaction, restrictions again, had to call again, get them lefted, was rinse repeat. My account is stilll open, but it's very fragile and no one can seem to explan why or why the change.

I've only sent money to myself at Exodus.

 

[5byfive]

I was reading this thinking that I have never had a problem just buying with Coinbase and transferring BTC right to my wallet. Then I tried to do it today and they put a 7 day hold on it. I chatted with a rep and said I had a history with them and a connected bank account and he said I was right, there shouldn't be a hold, and he would look into it. Then he came back with a page of cut and paste policy gibberish and said that is just the way it is. So things are not what they once were.

I ended up just going to Moonpay and paying through Paypal which is connected to the same bank account and sending it right to my wallet. It cost be about $3 more than Coinbase but there were zero issues and it took all of 5 minutes to process.

 

[bay_area_schizo]

Some tips when opening an exchange account:

1. It's very similar to opening a bank account or credit card. They're going to perform identity verification (KYC), soft pull your credit report, check your LexisNexis report, possibly even look at Chexsystems and/or Early Warning Services (EWS). If there's anything slightly off in any of those reports, you're likely to have problems (especially if there's any history whatsoever of negative balances, dishonored payments, going over credit limits, etc.).

2. Never, ever, fund your account with a debit card. In fact, you should never, ever use a debit card in everyday life. Fund via ACH transfer only. Some exchanges (Kraken for sure) use Plaid as their intermediary to handle bank transfers, so if you've ever had any issues with Plaid, or bank at a bank that doesn't support Plaid, you're going to have problems.

3. Just let your funds "marinate" in the exchange account for a bit. Don't immediately try to buy crypto—this is where most people run into problems. It's best to wait at least a week or more once the funds have settled and are available. Expect there to be a hold on your first transfer, and immediately trying to do something with funds just released from a hold on a brand new account is a huge red flag to these exchanges.

4. When you do finally buy crypto, same thing as above, let it sit in your account for a couple of days (longer if you can).

5. When you transfer crypto to your self-custody wallet, don't empty out the exchange account, leave some of it behind.

There's a lot more to it, and the guides in the Crypto Corner section will also help, but the most important thing to remember is making your first purchase with crypto is not a fast process, and trying to rush it is likely going to cause problems.

thank you for this! qq- do we have to use an additional wallet? I created an exodus account does that mean I already have a wallet? I have so much confuse 😢

 

[CNCCurrency]

So about 2 weeks ago I decided it was time to get an account setup and start learning crypto so I can make some CN purchases. I setup a Coinbase account and had it linked to a checking account at my credit union and a debit card to the same account. I got verified and used my debit to do my first transfer of $50 and bought USDT as a start. Once my limit recycled I deposited another $50 and bought USDT again. But when I tried to use my linked (through Plaid) bank account Coinbase froze my account and after a review suspended it and then closed it. They wouldn't tell me what I did wrong just told me to transfer my money out.

So I started a Kraken account. Uploaded pics of drivers license and selfies. Linked my checking account again seeded the account with $150. I haven't bought any crypto I've just let the cash sit there for a few days. Tonight I tried to add $300 to the account from the bank account I have linked and I received a notice from the app and an email stating that my account has had temporary restrictions placed on it and I cannot transfer money in or out. I'm guessing that Kraken is going to boot me out too and close my account.

Suggestions on what I might be doing to cause this? I'm getting frustrated with this whole process and I'm not sure where to go next to get started since coinbase/kraken were the only exchanges I thought about trying.

Me and crypto

 

[RetCurious]

Try Trust Wallet. It was fantastic. You can buy and send there.

I'm hearing Trust Wallet supports gasless transfers on ETH and sol for stablecoin, allows you to pay for gas with stablecoin?

 

[Flash-BCR]

I am 40% of the way to my main tirz/reta stash goal at this point...My CB account is about $1k right now and when it clears next weekend...off to EX it goes and it will get spent in real time for the rest of the tirz/reta i need for the freezer....the only thing I will need from CB/EX after that is the odd peptide kit(s) that I land on in the next couple/three months...otherwise they will hold nothing and I will not use them...fingers crossed... 😎

 

[Mc_ppka_tp]

Update (Sorry for the long read, venting frustrations)

TLDR: Kraken account restrictions lifted, polished account info and started new account just for crypto and it all seems to be working now.

So I had my Kraken account restricted on May 15th. After spend an hour on their support page and playing 20 questions with Kai their AI assistant I filed an account review request on May 16.

While waiting on my ticket to be picked up I hit up Krakens' support page & AI chatbot, chatgpt/claude/etc, and google trying to figure out what might have gone wrong. So while going through all the possible reasons why my account was restricted this is what I found:

1. My last name on my Kraken account had only the first letter capitalized and no middle initial. While the name on my bank account had my middle initial and 2 letters in my last name capitalized.
2. My Credit Union bank account is a joint account. I am the primary account owner and my wife is listed as a secondary on the accounts. Problem is that when I attempt to transfer fund from the account through a ACH ie Plaid she is listed as the owner of the account and I don't show up on the transfer screen. So it didn't match exactly to what was on my account

On May 22 Kraken contacted me to notify me that my account had been re-instated and all restriction lifted. I asked my custom support contact "Floyd" the reason my account was restricted and his initial response was the equivalent of a digital shrug. I pushed the issue a little bit and his response was he couldn't directly say because it was a security issue. Though reading between the lines and checking the tea leaves it seemed he was trying to say there wasn't a reason.

So to address these perceived red flags I found, I opened a new account at my CU with only my name on the account and filed another ticket with Kraken to change my account info name to match exactly to what appears on my bank account. This time the ticket was picked up and completed within 3hrs. I removed the old bank account and linked the new account. I waited 2 days to let things settle and then attempted another transfer from my new bank account to Kraken and lo and behold it went through and I wasn't automatically restricted.

Now I will let this money sit for 7 business days in my Kraken account before buying anything or tranfering anything.

Hope this might help anybody else having issue or just frustrated. There is hope