Cryptocurrency exchange Coinbase has swiftly refuted rumors circulating on social media claiming that it had imposed a $5,000 weekly limit on Bitcoin withdrawals. The unfounded rumors gained traction after a user’s post on October 24, which went viral on social media platforms. Coinbase’s response, coupled with a brief trading disruption on October 23, has added to the ongoing chatter in the crypto community.

On October 24, a user on social media platform X (formerly known as Twitter) alleged that Coinbase had enforced a policy limiting Bitcoin withdrawals to a maximum of $5,000 per week. The post quickly garnered attention, amassing over 250,000 views, 420 retweets, and nearly 2,000 likes. Crypto researcher Chris Blec even questioned the veracity of the claim, sparking further discussion within the community.

Coinbase’s swift response

In response to the rumors, Coinbase moved quickly to quell any concerns. A spokesperson for the exchange clarified that withdrawal limits were not universally set at $5,000 per week and explained that withdrawal limits were dependent on the payment method used. The spokesperson urged users to consult Coinbase’s official policy on account limits and withdrawals for accurate information.

Coincidentally, the rumors about withdrawal limits emerged at a time when Coinbase experienced temporary difficulties in processing trades. According to Coinbase’s official status page, the exchange encountered problems processing trades starting around 6 PM UTC on October 23. Less than an hour later, the platform provided an update, stating that the issue had been resolved, and the team was closely monitoring trading activities.

The trading disruptions on Coinbase coincided with a surge in market activity, as the price of Bitcoin soared to as high as $35,000. This price level had not been seen since May of the previous year.