- Coinbase users in Eastern Europe exploited a pricing bug that allowed them to cash out their cryptocurrencies for 100 times the exchange rate.
- Georgia GEL’s national currency was priced at $ 290, instead of $ 2.90 due to a third-party glitch on Coinbase.
- Coinbase is working to recover funds withdrawn improperly, the tokenized stock of the COIN exchange has collapsed.
Coinbase Users from the Eastern European country of Georgia exploited a bug in the exchange app, withdrawing the exchange rate 100 times. Due to a technical error by a third party, Coinbase suffered an improper withdrawal of funds.
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Incorrect Coinbase pricing results in improper withdrawal of funds
Coinbase users in Georgia have reportedly exploited a bug in the exchange. This allowed users to cash out their holdings at 100 times the exchange rate. Users pocketed thousands of dollars in profit by exploiting the exchange rate bug.
The national currency of Georgia, the Lari (GEL) was incorrectly priced at $ 290 instead of $ 2.90. Coinbase told Coindesk that the missing decimal point was a third-party glitch. Users who would have taken advantage of the pricing error suffered freezing of their bank accounts and debit cards by banks immediately after the transfer.
0.001% of total Coinbase users took advantage of the mistake, a total of 1,000 customers made wire transfers to their accounts. Coinbase has yet to disclose the extent of its total losses, however a spokesperson considers it a “small non-material amount”. Coinbase solved the problem and took steps to recover improperly withdrawn funds.
Users who have withdrawn to their accounts 100 times have lost access to their bank accounts. Therefore Coinbase is likely to impose improper withdrawal amount on users soon.
LevanIlashvili, a pseudonymous crypto influencer, reported this Georgian bank to be confirmed blocked the accounts of users who took advantage of the pricing error on Coinbase.
@coinbase had a big problem yesterday and they don’t seem to be talking about it publicly.
Yesterday for specific pairs they had quite impressive exchange rates: 1 USDT ~ 290 GEL (exchange rate in local banks 1 USD = 2.86 GEL).
The thread continues
– Levan Ilashvili (@LevanIlashvili) August 31, 2022
Coinbase’s tokenized stock on FTX, COIN has plummeted 6.2% in the past seven days. The token continued its decline after the incident.