But I still have my doubts. Why should an exchange reject a coin or frustrate it's flow knowing so well they will make money from the movement or trading of the coin?
It's not like the exchange really cares, but they're bound by regulations most times. They are on a thin line and any mistake they make regulatory bodies will be coming in hot. So they do things like this to take pressure off of them a bit.
I know a guy that Binance seized the coins in his account because he used his account to receive money that turned out to be gotten through fraud. They froze his account and reported him to the authorities.
By the way, isn't it illegal to take away someone's money without his permission?
All Coinbase have to say is that your coins triggered some secret algorithm which made them suspect theft, money laundering, darknet use, gambling (in some jurisdictions), or some other use your government dislikes, and not only does it become legal for them to seize your coins, but it becomes actively encouraged by your government.
Damn! It just keeps getting scarier.
But is there a way to prove that what they (coinbase) are saying is not true?