- In Georgia, Coinbase users had access to a pricing bug that allowed them to sell their holdings for 100 times the market price.
- A mistake allowed users holding $100 worth of lari on Coinbase to withdraw it for $10,000 to their bank account.
- Some individuals who were successful in doing so reported that after receiving money from their banks, the banks terminated their debit cards and bank accounts.
Users of Coinbase (COIN) in Georgia, an Eastern European nation, could take advantage of a price bug that lets them sell their holdings for 100 times the going rate, making thousands of dollars in profit.
Some coinbase users saw this amazing opportunity of arbitrage, sold their assets and withdrew money on their bank accounts.
In few hours, one of the worst Georgian banks – TBC – blocked ALL of their accounts and ALL their money.
— Levan Ilashvili (@LevanIlashvili) August 31, 2022
On Wednesday, the lari (GEL), the currency of Georgia, was valued at $290 as opposed to $2.90. The omission of the decimal point was attributed by Coinbase to “a third-party technical issue” in an email to CoinDesk. Users holding $100 worth of lari on Coinbase were able to withdraw it for $10,000 to their bank account due to an error.
Some users who were successful in doing so claimed their banks suspended their debit cards and bank accounts after transferring money to them; Coinbase contended that this was not at its request. According to Coinbase, 0.001%, or roughly 1,000 people, took advantage of the flaw.
Although Coinbase hasn’t revealed the value of its loss, a spokeswoman called it “a little non-material amount.” The representative said, “We addressed the issue and are moving to recover the wrongfully withdrawn monies.” Blockworks had initially published the incorrect cost.
With all the security concerns and the crypto winter, Coinbase has had a tough year. Earlier this year, Coinbase said that it had updated its Coinbase Wallet with a new feature that alerts customers when they visit dangerous dApps. According to the firm, the additional layer of security would help protect customers from the growing attacks and fraud in the Web3 ecosystem.
Users that attempt to access a dApp will have it checked against a sizable database of dangerous dApps by Coinbase Wallet. The dApp will display a warning if it is labeled as harmful. The database keeps track of dangerous dApps or websites by combining open-source information, security researcher analysis, and user feedback.