Coinbase is facing scrutiny as it pushes users to move funds ahead of a March 31, 2026 deadline tied to its Commerce platform transition. While the company recommends using its official withdrawal tool, it also provides an option for users to import their seed phrase into compatible wallets like Coinbase Wallet or MetaMask.

The inclusion of a seed phrase entry method has sparked backlash from security experts, who warn it could increase the risk of phishing and social engineering attacks. With billions lost annually to crypto scams, critics argue that even legitimate prompts for sensitive information may set a dangerous precedent for user safety.