BlockNews.com
  • Crypto
  • NFT
  • Metaverse
  • DeFi
  • Business
  • Technology
  • Opinion
  • Guides
No Result
View All Result
SUBSCRIBE
BlockNews.com
  • Crypto
  • NFT
  • Metaverse
  • DeFi
  • Business
  • Technology
  • Opinion
  • Guides
No Result
View All Result
BlockNews.com
No Result
View All Result
Home Business

Coinbase Threatens to Sue Crypto Traders Who Profited From Pricing Glitch

BlockNews Team by BlockNews Team
October 19, 2022
in Business, Crypto, Media
Reading Time: 4 mins read
A A
Coinbase-Logo
1
SHARES
12
VIEWS
Share on TwitterShare on Reddit

Coinbase is the world’s second-largest cryptocurrency trading platform. The exchange gave hints that it might sue about 1,000 users in the Republic of Georgia for exploiting price discrepancies.

You might also like

Crypto Twitter Thinks the Fed’s $297B Balance Sheet Expansion Is ‘QE’, but It’s Not

Ripple-SEC Case: XRP Price Turns Bullish As Coinbase Hints At Relisting

Solana’s Top DEX Orca Restricts Access For American Users

REPORT: #Coinbase threatens to sue #Crypto traders who profited from pricing glitch.

— Unidef Times (@UnidefTimes) October 18, 2022
Via @UnidefTimes – Twitter

On August 29, approximately 1,000 Coinbase users in a country sandwiched between Europe and Asia reportedly received a complaint when their local currency, the lari, was trading at $290 instead of $2.90 on Coinbase for about six hours. 

Many users took advantage of the “arbitrage opportunity,” which is about 0.001% of the company’s US-based users.

“The glitch was a “third-party” error,” Coinbase told CoinDesk at the time without specifying the company. 

As such, the case demonstrates a long-standing concern of financial regulators. The institutional risk from external partnerships is eminent in the glitch.

“When everything happens within the bank, we know exactly who is to blame if something goes wrong,” US Attorney General Michael Shu said last week. 

However, the risk can be eliminated by dividing the work between institutional investors and fintech startups with different business models.

A spokesperson said the amount lost in Georgia, which the company refused to disclose, was insignificant.

“Coinbase is working with law firm Gvinadze & Partners to help recover fraudulently deposited funds. “This is according to a Coinbase spokesperson.

“We cannot comment on specific claims or litigation status,” a company representative said. “However, users who return wrongly credited funds will not be subject to further legal proceedings.”

Coinbase Glitch Millionaires Receive “The Email” after a Happy Interview 

Avtandil Kutchava, the host of Georgia’s Crypto Bazari TV show, told CoinDesk that about 470 people had contacted his team about the situation. People may have made millions of dollars in transactions at the wrong Lali rate. On that day, his ATM in Tbilisi’s capital ran out of banknotes.

CoinDesk spoke with four traders who took advantage of this price gap in a group video call. All said they temporarily froze their bank accounts after selling their cryptocurrencies for lari and withdrawing fiat into their bank accounts. A few days later, the account and bank card were unblocked without doing anything.

On September 24, all four received an email from Gvinadze & Partners stating that “Coinbase intends to use all available legal means to recover the funds that were mistakenly deposited as soon as possible. I promise, and if the user does not respond to this email, return the money, and legal action may be taken against them.” 

Coinbase Neither Denies Nor Confirms

Coinbase did not confirm whether the exchange had contacted Georgia banks to freeze traders’ accounts. Traders said at least two of Georgia’s largest banks, Bank of Georgia and TBC, have frozen but unblocked the account of the user who exploited this flaw.

One of CoinDesk’s users (who was asked not to disclose his last name), speaking to a Georgia tech startup manager and amateur trader named Tornike, said he was in Grigoleti, a small resort town, on August 29.

“I sold my Stellar Lumens (XLM) while vacationing on the Black Sea coast.”

He quickly transferred the winnings to his Georgia Bank account and went to a nearby ATM to double-check. Money could be withdrawn. But hours later, Tornike tried to buy wine at a local store. He said the payment went wrong, and his debit card was frozen. Three days later, something changed, and Tornike could use his bank account again.

News site Blockworks cited a text message one of the traders received from the bank. “Hello, we have flagged your transaction with Coinbase as suspicious. We suspend all accounts and cards,” read a blanket SMS message from one bank to a customer. 

Tags: BusinessCoinbasecrypto
TweetShareShare

Recommended For You

Crypto Twitter Thinks the Fed’s $297B Balance Sheet Expansion Is ‘QE’, but It’s Not

by BlockNews Team
March 22, 2023
0
crypto twitter

The most recent rise in the central bank's balance sheet, according to some analysts, is not as obviously stimulative as the one that came after COVID-19. The US...

Read more

Ripple-SEC Case: XRP Price Turns Bullish As Coinbase Hints At Relisting

by BlockNews Team
March 22, 2023
0
xrp

Coinbase could relist the XRP token if Ripple wins the ongoing lawsuit against the SEC. The exchange will initiate the relisting process immediately after the court pronounces itself...

Read more

Solana’s Top DEX Orca Restricts Access For American Users

by BlockNews Team
March 22, 2023
0
orca.so

US-based users will be banned from trading on Orca’s web interface beginning March 31st. Orca said the ban exempts those who trade directly using smart contracts and their...

Read more

DefiLlama Forks into a New Platform as Internal Disputes Unfolds

by BlockNews Team
March 22, 2023
0
DefiLlama

Blockchain data platform DefiLlama is in turmoil following its employee's rejection of its Token Launch Plan.  Now, the creators of one of DeFi's prominent dashboards have made a...

Read more

Massive USDT Transfer – Is This The Reason Behind The Current Crypto Market Shift?

by BlockNews Team
March 21, 2023
0
USDT

The crypto market has witnessed a dramatic couple of weeks, leading to uncertainties about what the future holds for the digital asset sector. Crypto debunking in the United...

Read more
Next Post
Japan-Crypto

Japan Regulators To Loosen Crypto Rules, Make It Easier To List Virtual Coins

Related News

Polkadot-Logo

Polkadot Price Analysis: Bulls Overpower Bears As DOT Targets $10

October 27, 2022
metamask

Popular Crypto Wallet, MetaMask, Alerts Users About New Scamming Method Called “Address Poisoning”

January 13, 2023
goblintown.wtf

Fading Trends in the NFT Space: The Slow and Painful Decline of goblintown.wtf

October 6, 2022

Browse by Category

  • Breaking News
  • Business
  • Crypto
  • DeFi
  • Finance
  • Gaming
  • Guides
  • Investing
  • Media
  • Metaverse
  • NFT
  • Opinion
  • Politics
  • Social
  • Technology
  • Uncategorized
BlockNews.com

BlockNews.com brings you the most important Crypto and NFT news in the space.

CATEGORIES

  • Breaking News
  • Business
  • Crypto
  • DeFi
  • Finance
  • Gaming
  • Guides
  • Investing
  • Media
  • Metaverse
  • NFT
  • Opinion
  • Politics
  • Social
  • Technology
  • Uncategorized

RECENT POSTS

  • Crypto Twitter Thinks the Fed’s $297B Balance Sheet Expansion Is ‘QE’, but It’s Not March 22, 2023
  • Ripple-SEC Case: XRP Price Turns Bullish As Coinbase Hints At Relisting March 22, 2023
  • Solana’s Top DEX Orca Restricts Access For American Users March 22, 2023

© 2022 BlockNews.com - Crypto and NFT news website by JRNY Club.

No Result
View All Result
  • Home
  • Crypto
  • NFT
  • Metaverse
  • DeFi
  • Business
  • Technology
  • Opinion
  • Guides

© 2022 BlockNews.com - Crypto and NFT news website by JRNY Club.

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?