Cryptocurrency exchange Coinbase made a technical error in the market quotation of the Georgian lari, having exceeded its actual value by 100 times – the platform valued it at $290 instead of $2.90.
Coinbase reported that the error was due to a technical issue and was a case of missing a decimal point. Clients who discovered the bug before the exchange fixed it were able to withdraw their assets up to 100x. About 1,000 users took advantage of this opportunity, according to Coinbase.
A number of the exchange’s clients, who spoke on condition of anonymity, told reporters that some deals that should have brought in only about $150 were closed on Coinbase in amounts of $15,000, and the proceeds were transferred to personal bank accounts and withdrawn.
The current average salary in Georgia is about $4,200 per year. Thus, some Coinbase users have earned three times the national average income. The Georgian crypto community estimates that Coinbase’s losses could range from $14 million to $140 million.
However, Coinbase refutes this assumption. The representative of the exchange said that only 0.001% of the total number of users who were able to withdraw a small amount of funds from the exchange took advantage of the error. At the same time, the site intends to recover illegally withdrawn funds.
Last month, researchers from the University of Technology in Sydney drew the attention of the crypto community that between 10% and 25% of exchange listings over the past four years were accompanied by insider trading.
Source: Bits
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