Sunday, December 4, 2022
 

Missed Decimal Point a Costly Mistake for Coinbase Exchange

  • A bug was discovered on the Coinbase exchange on Wednesday.
  • So far, Coinbase has attributed the missed decimal point to a “third-party technical issue.”
  • The exchange stated that it has fixed the issue.

On Wednesday, a bug was discovered on the Coinbase exchange that saw Georgia’s national currency, the lari, priced at $290  instead of $2.90. This means that Coinbase (COIN) users in the Eastern European country were able to exploit the bug to cash out their holdings at 100 times the exchange rate.

In other words, people ended up pocketing thousands of dollars because the lari was priced at $290 and not $2.90. Some users holding $100 worth of lari on the Coinbase exchange were able to withdraw it to their bank accounts for $10,000.

So far, Coinbase has attributed the missed decimal point to a “third-party technical issue,” but nothing specific has been revealed regarding the bug. The mispricing was initially reported by Blockworks.

Some of the people who decided to make the most of the bug and cash out their holdings reported some problems. Some people explained that their bank accounts and debit cards were frozen after they transferred the funds.

Coinbase revealed that they expect that about 0.1% of its total users decided to take advantage of the problem. This amounts to around 1,000 people.

In addition, Coinbase does not seem to be worried about the mistake and how it was exploited as the decentralized exchange described the amount lost to the bug as a “small non-material amount.”

The Coinbase spokesperson said, “We fixed the issue and are taking action to retrieve the improperly withdrawn funds.”

  • A bug was discovered on the Coinbase exchange on Wednesday.
  • So far, Coinbase has attributed the missed decimal point to a “third-party technical issue.”
  • The exchange stated that it has fixed the issue.

On Wednesday, a bug was discovered on the Coinbase exchange that saw Georgia’s national currency, the lari, priced at $290  instead of $2.90. This means that Coinbase (COIN) users in the Eastern European country were able to exploit the bug to cash out their holdings at 100 times the exchange rate.

In other words, people ended up pocketing thousands of dollars because the lari was priced at $290 and not $2.90. Some users holding $100 worth of lari on the Coinbase exchange were able to withdraw it to their bank accounts for $10,000.

So far, Coinbase has attributed the missed decimal point to a “third-party technical issue,” but nothing specific has been revealed regarding the bug. The mispricing was initially reported by Blockworks.

Some of the people who decided to make the most of the bug and cash out their holdings reported some problems. Some people explained that their bank accounts and debit cards were frozen after they transferred the funds.

Coinbase revealed that they expect that about 0.1% of its total users decided to take advantage of the problem. This amounts to around 1,000 people.

In addition, Coinbase does not seem to be worried about the mistake and how it was exploited as the decentralized exchange described the amount lost to the bug as a “small non-material amount.”

The Coinbase spokesperson said, “We fixed the issue and are taking action to retrieve the improperly withdrawn funds.”

 

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