Coinbase exchange was launched in 2012 right? Have there ever been any cases of users' assets being frozen and never released to them? I know someone living in the united states, she said that Coinbase seized her crypto in 2020 within that COVID-19 period and to date, the assets were never released back to her. I respect coinbase so much and I am curious why such a thing would happen.
Generally the exchange authorities do not easily freeze the funds of their customers or users, but sometimes for special reasons they can temporarily freeze the funds of the customers.
Personal information ,If a customer has placed the personal information wrongly i.e. if he has submitted wrong information while doing KYC, then the exchange authority can freeze his funds temporarily.
Illegal funds,If a user transfers funds from an illegal source, the exchange authority may freeze the user's funds permanently.
Location,Many times, if the user's location is in the restricted list of the location of the exchange, then the exchange authorities can temporarily and permanently freeze the funds in the user's account while transferring funds to that location.