The Fraud Codex

Back to all sites

Is Coinbase a Scam?

coinbase.comLegitimate Business
Risk Assessment
15%Risk Score
Low Risk

Summary

Coinbase is a legitimate, publicly-traded cryptocurrency exchange (NASDAQ: COIN). It is one of the largest and most regulated crypto exchanges in the United States.

Coinbase is absolutely NOT a scam. It is one of the most legitimate crypto companies. Low review scores often reflect crypto volatility, not Coinbase fraud.

Company Information

Parent Company
Coinbase Global, Inc.
Founded
2012
Headquarters
San Francisco, CA
Stock
NASDAQ: COIN
Employees
3,500+

Trust Indicators

  • Publicly traded on NASDAQ[source]
  • Regulated by multiple US agencies[source]
  • FDIC insurance on USD balances (via partner banks)[source]
  • SOC 2 Type II certified[source]

Concerns

  • Cryptocurrency itself is volatile/riskymedium[source]
  • Higher fees than some competitorslow[source]
  • SEC lawsuit over securities (ongoing)medium[source]
BBB Rating
A
Trustpilot
1.8/5
BBB Complaints
4,500

💡 Recommendations

  • 1.Enable two-factor authentication
  • 2.Use Coinbase Vault for large holdings
  • 3.Only invest what you can lose
  • 4.Be aware of phishing sites impersonating Coinbase

📚 Sources

Coinbase SEC FilingsNASDAQ Stock InfoCoinbase LicensesBBB Business ProfileTrustpilot ReviewsSEC Press Release (Lawsuit)
Last updated: 2026-01-22

Disclaimer: This analysis is for informational purposes only. Information may be incomplete, outdated, or inaccurate. Our assessments should not be the sole basis for financial, legal, or personal decisions. Always conduct your own research and due diligence.