News

Coinbase Users In Georgia Withdraw Crypto With X100 Profits?

Coinbase made a mistake valuing Lari Georgia at 100 times that lasted for 7 hours causing more than 1000 users in Georgia to take advantage of the opportunity to make a profit. However, after discovering the error, the exchange locked the bank account as well as the linked Visa debit card for recovery.

According to anonymous information from Blockwork, on August 31, Coinbase mispriced Lari Georgia at $290 instead of $2.90 in seven hours. According to the exchange, only about 1000 users took advantage of the opportunity, and the company only lost a nominal amount.

However, as soon as it was discovered Coinbase locked the bank account as well as the associated Visa debit card to recover the amount.

“In late August, prices for cryptos denominated in Georgia’s national currency had been rated at GEL 290 instead of GEL 2.90. The missed decimal point had been due to a ‘third-party technical issue,”

A Coinbase spokesperson told Blockworks
Image shows trader sold five lots of 0.01 ETH ($15.25) for 4,272 GEL ($1,525) each on August 30. Source: Blockwork

According to Twitter user Levan Ilashvili, at least one bank blocked all of the users’ accounts until further notice. And while Coinbase does reserve the right to reverse erroneous transactions in its user agreement, the fact of the matter is that all of the users’ funds have been frozen on account of their mistake.

“At the moment, Coinbase is not communicating with their customers and at the same time, people can’t withdraw their own money from their own bank accounts,”

He tweeted

“Hello, we have marked your transactions with Coinbase as suspicious and we’re locking all your accounts and cards,(…). Please be aware that Coinbase may request clawback of the funds. Sorry.”

One bank’s blanket text message to customers reads

Users told Blockworks that certain trades on Coinbase that should have brought in $150 or so instead brought in $15,000, with the money being moved to personal bank accounts.

Georgians make about $4,200 a year on average, thus some customers made more than three times the national average. Losses for Coinbase are estimated by a Georgian trading community that Blockworks contacted to range from $14 million to $140 million, while this exchange disputes those figures.

If this is a “third party technical issue”, who is responsible? Did the user do anything wrong in this situation? Are all the errors caused by the user being too greedy? But why could Coinbase be involved in freezing user accounts of banks in a country other than the US?

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Foxy

CoinCu News

Victor

Recent Posts

BlockDAG Surges Past $170M as BDAG250 Bonus End Countdown Begins – Aave Targets $400 & Solana Shines with Scalability

BlockDAG crosses $170.5M in presale success with BDAG250 bonus and Whitepaper V3 launch! Solana grows…

1 hour ago

Qubetics Presale Price Surge Approaches: The Best Coins to Invest in Right Now While Toncoin, and XRP Gain Traction

Discover why Qubetics, Toncoin, and XRP are the best coins to invest in right now.…

2 hours ago

Book of Meme Old News? This Best Meme Coin to Invest in 2024 Is Multiplying Gains Like a Champ

Over the years, meme coins have evolved from inside jokes into serious investment opportunities.

3 hours ago

Time’s Ticking on BlockDAG’s 5-Tier Bonus- Few Days Left to Grab It While Cardano Whales Take Action, Aave Rallies Strong

Discover BlockDAG's five-tier bonus program's closing phases that enhance buyer holdings. Gain insights on the…

3 hours ago

Best Altcoins to Buy for 2025: Qubetics Presale Surge, Solana’s Lightning Speed, and Cardano’s Blockchain Revolution

Discover why Qubetics, Solana, and Cardano are redefining the crypto landscape. Learn about milestones, price…

4 hours ago

Why Qubetics, NEAR Protocol, and IMX Are Dominating Crypto: The Best Altcoins to Join Today for Game-Changing Returns 

Discover why Qubetics, NEAR Protocol, and Immutable X are the best altcoins to join today,…

6 hours ago

This website uses cookies.