Coindesk Logo

Just 7 People Complained to the CFPB About Bitcoin in 2016

Just 7 People Complained to the CFPB About Bitcoin in 2016

Just 7 People Complained to the CFPB About Bitcoin in 2016

Data shows that American consumers aren't filing many complaints with the US government's consumer watchdog.

Data shows that American consumers aren't filing many complaints with the US government's consumer watchdog.

Data shows that American consumers aren't filing many complaints with the US government's consumer watchdog.

AccessTimeIconJan 12, 2017, 8:40 PM
Updated Aug 18, 2021, 5:34 PM

Presented By Icon

Election 2024 coverage presented by

Stand with crypto

New data shows American consumers filed a total of just seven complaints with the US Consumer Financial Protection Bureau (CFPB) in 2016.

The CFPB was created in the wake of the financial crisis of the late 2000s as part of a bid to more closely scrutinize financial products and services in the US. The agency began accepting complaints related to digital currencies in August 2014.

Now, student loan marketplace LendEDU has scraped data from the CFPB's public complaints database, finding that, of the nearly 190,000 complaints filed over the course of 2016, only seven of them related to digital currency services. Four of those were filed against Coinbase while three were submitted against Circle.

According to the CFPB database, only one complaint – filed against Coinbase on 29th November – is in-progress, whereas the remaining six were closed.

The amount of complaints in other categories dwarfs those in the virtual currency bracket. For example, LendEDU found that 43,841 complaints were made regarding credit reporting; 40,965 for mortgages; and 39,759 for debt collection.

But why the low number, compared to the others?

The data could simply be reflective of a relatively low number of consumers using bitcoin services. Conversely, consumers may not know that the CFPB – itself only a five-year-old agency – even takes complaints related to the tech, meaning that other parts of the government could be on the receiving end of complaints.

Still, in its blog post, LendEDU noted that the data suggests authorities don’t have much to investigate.

"Fortunately for consumers, virtual currency doesn't seem to be a huge issue," the company said. "Or at least not an issue garnering too many complaints."

The findings echo past deep-dives into the CFPB data in this area.

The nonprofit advocacy group Coin Center reported in July of last year that a review of complaint data from 2011 through 2015 revealed 37 complaints filed against companies in the digital currency space, including Coinbase as well as other firms like the now-defunct GAW Miners and Butterfly Labs, among a number of others.

Image via Shutterstock

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information have been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. CoinDesk has adopted a set of principles aimed at ensuring the integrity, editorial independence and freedom from bias of its publications. CoinDesk is part of the Bullish group, which owns and invests in digital asset businesses and digital assets. CoinDesk employees, including journalists, may receive Bullish group equity-based compensation. Bullish was incubated by technology investor Block.one.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.