Wrong Notification on Account Security
US-based crypto exchange, Coinbase has been having some customer-related issues of late. In a recent development, the leading cryptocurrency exchange sent notifications on account security in error to over 120,000 of its customers. According to reports, this generated lots of reactions from the affected users with most fearing that their accounts had been compromised.
Coinbase Notifies Users of Mistake
Following the Friday incident, Coinbase would later send a circular on its official Twitter page the next day, notifying users of the mistake. However, the deed had already been done leading thousands of users to panic and sell their crypto assets. Some of the affected users had sent emails to Coinbase, expressing their concerns over the unwarranted notifications.
Many of the affected users also responded to the subsequent tweet that assured users of account safety. According to one user, he had feared that his funds were already stolen. Some claimed that they could not access their accounts in the wake of the erroneous notification.
However, the crypto exchange acknowledged that it was an error on its part, and attributed the mistake to an internal bug in its system, while debunking claims that it was a hack or a third-party error. Coinbase also assured users that it was committed to responding to the messages sent by panicking users.
Coinbase Users Accuse Exchange of Poor Customer Support
The Friday incident comes on the heels of a previous report, which revealed that some users’ had their accounts hacked and crypto assets stolen. The same report noted that affected users had decried the exchange’s poor customer support following the hack. Some lamented that Coinbase was handling the incident poorly despite losing thousands of dollars in Bitcoin and other cryptocurrencies.
In the past, other exchanges like Binance have had to face reports of accounts compromise. Binance would have lost over $400 million belonging to users after some users had their account details compromised in 2017. Fortunately, the leading exchange was able to freeze the funds before they were withdrawn.
Account security is paramount, and this is one of the cons of centralized exchanges as they try to serve millions of their users. Due to this, the Two factor Authentication (2FA) was introduced as this adds an extra layer of security to crypto accounts, but it is only possible if users protect their details from the reach of hackers.
Back in April, Coinbase filed for an IPO and became the first crypto business to get a public listing. Coinbase listed on NASDAQ later in April, spurring other crypto exchanges like Binance and Kraken to indicate interest in launching an IPO. Crypto and Stock trading exchange Robinhood showed interest as well but its IPO application process was stalled by the US SEC.
Coinbase serves the US region and boasts 68 million users, more than 2000 employees and over $200 million held in its custody. The exchange recently made a $500 million investment in Bitcoin, Cardano (ADA) and others. It ranks as number two exchange after Binance, according to CoinMarketCap.