What does escheatment mean?
Your funds go into escheatment when the owner has made no contact or activity generated for a period of time designated by state law, typically 3-5 years. At this point, they are considered unclaimed or abandoned property. Forms of unclaimed property include but are not limited to checking/savings accounts, brokerage accounts, 401k accounts, pension fund accounts and the contents of safety deposit boxes.
Why is this happening? How do I stop this from happening in the future?
Each U.S. state and territory has its own statutes related to items of value that are considered "abandoned." An item is considered abandoned if the owner has not expressed an interest in the item for a specific period of time. This time varies by state, but is usually between 2-5 years. For Coinbase purposes, an account holder expresses an interest in their account any time they sign into that account or make contact with our customer support team.
What did Coinbase do with my funds?
Digital currency that is considered abandoned based on the unclaimed property laws of the account holder's state of residence are converted into U.S. dollars. The proceeds from this conversion are then sent to the account holder's state unclaimed property office to be held until the owner makes a claim to recover the U.S. dollar proceeds of this conversion. There is no conversion necessary for abandoned U.S. dollars held in a customer's cash balance. Coinbase is exploring methods to turn over digital currency in its native format, but no state has yet put a system in place to accommodate this.
How do I get my money back?
Each state has its own method for an owner to claim abandoned property, which is normally outlined on their website. The National Association of Unclaimed Property Administrators has assembled a FAQ that provides answers to common questions: https://www.unclaimed.org/what/
If you established your account with Coinbase Kenya Ascending Market, Ltd., in 2023 or before April 2024, Coinbase is transferring or has transferred the assets in your account to its affiliate. The affiliate, Crypto Services, Inc., is liquidating or has liquidated the crypto assets that were in your account. The liquidated crypto assets, in US dollars, will or have been reported and delivered to its state of incorporation, Wyoming.
Coinbase tried to contact you multiple times at your account's verified email address, asking you to transfer your account assets to an external wallet. Due to your failure to respond and your continued lack of account activity, Coinbase has followed the laws of the State of Wyoming and closed your account.
You will need to contact Wyoming’s Unclaimed Property Division directly to claim your property. Coinbase cannot provide further support regarding the funds.
To reclaim your property
Gather all available proof of ownership.
Your personal identification information such as your name, email address, and mailing address
A driver’s license or passport to validate your identity
Property description
Any additional supporting documentation that proves you own the property
For example, screenshots of your account and its contents, or copies of emails with Coinbase Kenya about the account, or trade/transaction confirmations
If you have moved since opening the Coinbase account, have documentation to prove you resided at a prior address
File the claim online or by calling a representative.
Go to the State’s website to file online
The website has a video that explains what evidence of your ownership may need to be submitted and has written instructions
Call the agency at 1-307-777-5590 to file by speaking with a representative