Cryptocurrency exchange Coinbase reported” by chance ” changes in the 2FA (two-factor authentication) settings of about 125,000 of its customers, causing some of them to sell assets.
The large US cryptocurrency exchange Coinbase, well known for managing to earn about $ 1.9 billion on user commissions in the last quarter, mistakenly informed 125,000 of its customers about changes in two-factor authentication settings in their trading accounts. Many users decided that their personal accounts were hacked, and in this regard rushed to close open transactions and withdraw funds.
The sending of the erroneous notice took place last Friday and lasted about an hour and a half. According to Coinbase assurances, this case was not a sign of hacking activity, but was caused entirely by an internal error of the platform.
According to information from the Arctechnica portal, one of the users of the exchange platform, pensioner Don Pirtle, in a panic sold digital assets in the amount of more than 60, 000 dollars, which he accumulated to transfer to his grandson in the future. The user declares that he is no longer particularly convinced that digital assets are a safe means of investment.
Such a panic among customers of the exchange is more than understandable. The history of the cryptocurrency market has many episodes where successful markets were hacked by hackers. Some users of these digital asset exchange platforms cannot return their own funds until now. The bad reputation of Coinbase, based on the indifference of its employees to customer problems, throws oil on the fire.
Among most large financial institutions, there is a practice that by using cybercrime insurance policies, organizations can cover the losses of users who are victims of cyber fraud. However, this does not apply to Coinbase.
This cryptocurrency platform explains that the cause of the disappearance of funds from trading accounts is the lack of caution of the customers themselves.
Beyond the strict “your hacking is your problem” policy, Coinbase has repeatedly been accused of slowly responding to critical customer issues. The topic on Twitter, in which the market announced notifications sent by mistake, quickly turned into a kind of complaint book, in which users complained about the poor quality of the service.
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