How Coinbase Users Made 100x Crypto Profits By Exploiting A Bug

• Coinbase users in Eastern Europe exploited a pricing bug that allowed them to withdraw their crypto for 100 times the exchange rate.
• Georgia’s national currency GEL was priced at $290, instead of $2.90 due to a third-party technical issue on Coinbase.
• Coinbase is working to retrieve the erroneously withdrawn funds, the exchange’s tokenized share COIN moved down.

Coin base users from the Eastern European country of Georgia took advantage of a bug in the exchange’s app, withdrawing 100 times the exchange rate. Due to a technical error by a third party, Coinbase suffered an erroneous withdrawal of funds.

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Coinbase’s mispricing results in erroneous withdrawals of funds

Coin base users in Georgia allegedly took advantage of a flaw in the exchange. This allowed users to withdraw their holdings for 100 times the exchange rate. Users pocketed thousands of dollars in profit by exploiting the exchange rate error.

The national currency of Georgia, Lari (GEL) was mistakenly priced at $290 instead of $2.90. Coinbase told Coindesk that the missing decimal point was a third-party technical issue. Users who allegedly took advantage of the price error had their bank accounts and debit cards frozen by the banks shortly after the transfer.

0.001% of Coinbase’s total users exploited the flaw, a total of 1,000 customers made transfers to their accounts. Coinbase has not yet disclosed the size of its total loss, but a spokesperson considers it a “small non-material amount.” Coinbase resolved the issue and took steps to recover the erroneously withdrawn funds.

Users who have made 100x withdrawals to their accounts have lost access to their bank accounts. Therefore, it is likely that Coinbase will soon demand the incorrect withdrawal amount from the users.

LevanIlashvili, a pseudonymous crypto-influencer, reported it Georgian bank TBC has blocked the accounts of users who took advantage of the price error on Coinbase.

Coinbase’s tokenized stock on FTX, COIN fell 6.2% over the past seven days. The token continued its decline after the incident.