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Highlights
- Widespread panic among Coinbase users was witnessed over the weekend after receiving 2FA reset notices.
- The leading US crypto exchange took to Twitter to apologise for the incident.
- Mixed public reactions was witnessed as several users took significant measures as a response to the incident.
The weekend saw widespread panic and fear among the customers of Coinbase (NASDAQ: COIN), the leading crypto exchange platform in the US, due to emails being mistakenly sent to the users stating that their two-factor authentication (2FA) settings had been changed. After sending emails to 125,000 of its customers on 27 August, Coinbase was subject to adverse reactions and widespread public backlash.
Following the kickback, Coinbase took to twitter on 29 August to express regret for the incident. It extended an apology to its users stating that it is totally into building trust and security in the crypto community, in a bid to make the open financial system a reality. And that such hurdles in the operations can undermine that trust. The apology was posted on the r/Coinbase subreddit, which received a variety of reactions by public.
ALSO READ: Crypto Kings: Extraordinary Tale of Coinbase Founders Brian Armstrong, Fred Ehrsam
Even though Coinbase was apologetic, several Coinbase users took to serious measures as a reaction to the email. A complete overhaul of security settings, liquidation of crypto holdings, and other significant measures were taken by the customers as they feared that hackers were making efforts to target their accounts.
The social media of the cryptocurrency exchange was flooded with comments after the incident, and a great number of users were not able to access the Coinbase app for many days after the mishap. Coinbase pledged that it will work hard to gain back the trust of all its users who were affected by the notifications. It announced a reimbursement of US $100 worth of Bitcoin (BTC) for its users in a bid to compensate for the inconvenience caused by the incident.
ALSO READ: Good News For Crypto Lovers: Coinbase Allows Crypto Purchase Via PayPal
The US $100 credit promised by Coinbase wasn’t received by Redditor “CoCraic_PNW” even after getting the 2FA notification on both Coinbase and Coinbase pro, and thus, they plan to shift their business to a rival exchange due to the incident. The US $100 BTC worth of credit was also not received by “Film2021”, and they are also planning a migration of their funds to a different exchange in the light of the incident.
Nevertheless, not everyone is critical of Coinbase, with Redditor “Leagance” expressing admiration for the firm for offering compensation for the error committed as soon as possible. It stated: “Just got my $100. Thanks, Coinbase. It was pleasing to see how quickly and easily I was able to lockdown my account.”
ALSO READ: Coinbase rides the crypto boom to hit over US$1 billion in revenue
This incident took place within a few days after numerous dissatisfied and aggrieved customers made claims that their Coinbase accounts were hacked and emptied, as per recent reports.
On 24 August, a new story stated that thousands of Coinbase customers claimed that the support of Coinbase failed to respond the appeals for help in relation to the alleged incident. The story, which was published by CNBC, said: “Interviews with Coinbase customers around the country and a review of thousands of complaints revealed a pattern of account takeovers, where users saw money vanishing from their account all of a sudden, followed by poor customer service from Coinbase that made those users feel helpless.”
Summing up
A new support phone line was announced by Coinbase earlier this month for grievance redressal by customers who think that their accounted have been hacked.
ALSO READ: Is Coinbase available in New Zealand? Is Coinbase safe?
