Coinbase is improving ID verification

Machine learning will now aid the security measures
09 February 2018   452

On February 7th Coinbase has made an update concerning identity verification. The company incorporated machine learning into the verification process. With this upgrade the process will take seconds instead of hours. In addition to that Coinbase has integrated an addtional ID verification vendor to address the growing volume of the applications.

With these improvements Coinbase is now able to successfully verify ~90% of all the ID verification applications. As the company has experienced a significant growth, it addressed the failed ID verification applications by providing clear instructions on how to take a more legible photo of an ID. On top of that, the company will now also send an email to the person with a failed ID verification application stating the reason why the application was rejected and applicable solutions.

These updates are already present on the Coinbase website. As for mobile applciations, the improvements will be rolling out in the next few weeks. Finally, the team annonced the creation of a special engineering team that will design internal identity service from the ground.

Here is just a couple of reactions at Twitter:

@DNBRS117 said “Sounds like a perfect application for @singularity_net”

@optictopic said “I hope it isn't going to work like the biased AI state governments use to pass criminal sentencing or that banks use to approve loans. Algorithms should never completely replace human discernment but work in tandem. #blackboxai”

Users on Coinbase official blog at Medium commented as follows:

Jason E said “You need to make it clear in your error that there can’t be any extra space outside the ID as I failed numerous times and it wasn’t clear why.”

Petroleum Blockchain said “That was super frustrating. Hopes it will improve a lot. But also your “security measure” each time one want to send crypto to another wallet: this so called 72h security verification are just unacceptable. We login, use Google AUTH and we are logged. At that moment, you accept buying, selling cryptos or depositing FIAT. There are no reasons now we can’t send our crypto (after enormous fees) immediately. You must change this process. I have lost money, time and patience having to endure your process. Security matter, but sounds more like you don’t want money to leave your exchange. One of a kind in the exchange industry.”

Cryptsy-Coinbase Lawsuit to Head to Jury Trial

In the case a former Cryptsy client claims that Coinbase had to prevent Paul Vernon (CEO of Cryptsy) from laundering stolen money through a wallet at Coinbase
24 April 2018   77

The appeal court of the US state of Georgia approved the lower court's decision to reject the appeal of Coinbase on the suit, according to which the company is accused of not being able to prevent Cryptsy CEO from hiding with the money of his clients. This is reported by CoinDesk.

In the case, plaintiff Brandon Leidel, a former Cryptsy client, claims that Coinbase had to prevent Paul Vernon (CEO of Cryptsy) from laundering money through a wallet at Coinbase.

Vernon used Coinbase to launder millions of dollars he stole from his clients before the collapse of Cryptsy.

Coinbase tried to negotiate the suit in an arbitration court, pointing to the custom agreements that Vernon signed when he started using the purse of the exchange. However, last year the judge ruled that the clients of Cryptsy are not bound by the same agreements as Vernon, and therefore - in this case it is not necessary to make an arbitration award.

Coinbase appealed to this decision, but the district court rejected it.

Leidel does not seek to enforce the terms of the User Agreements, nor does he allege any tort rooted in an allegation that Defendant breached or facilitated a breach of any obligation uniquely imposed by those agreements. In other words, Leidel's claims are viable, if at all, without reference to the User Agreements, as the duties Defendant allegedly breached were not imposed by those agreements.
 

The Eleventh Circuit Court of Appeals

As a result, the case now turns into a jury trial in the form of a class action.

We are pleased, though not surprised, the appellate court affirmed the trial court's decision to keep this dispute in the public view ... We look forward to having Coinbase answer for its role in the millions of dollars in harm suffered by our clients; and we look forward to resolving these claims in court.
 

David Silver

Plantiff

Coinbase did not immediately respond to a request for comment of Coindesk.