• A Coinbase user lost $96,000 due to an SMS prompt message prompting them to change their password and account draining.
• Coinbase denied responsibility for failing to flag several unauthorized transactions while the victim managed to regain access the next day, only to see multiple zeros.
• Coinbase has also refused to reimburse a client in a similar situation in 2021, when a user lost a considerably smaller sum of $7,500 due to a SIM Swap hack.
Coinbase Refuses Refund for Lost Funds
A Coinbase user recently lost $96,000 due to an SMS prompt message prompting them to change their password and an account drained as a result. Despite this, Coinbase refuses responsibility for failing to flag several unauthorized transactions that led up to the significant loss.
Similar Situation Occurred in 2021
The victim managed to regain access the next day but was met with seeing multiple zeros instead of his life savings. This is not the first time that Coinbase has been accused of refusing reimbursement for losses caused by security breaches; another client faced similar issues in 2021 when they lost $7,500 due to a SIM Swap hack.
Coinbase Stock Price Decline
Unethical practices like this have taken its toll on Coinbase’s stock price as well; at press time it costs $62.77 with 2.7% decline in the last 24 hours.
Base Layer-2 Blockchain Launched
In addition, Coinbase recently launched Base Layer-2 blockchain while CEO Brian Armstrong intends on applying transaction monitoring in compliance with regulations set by different governing bodies around the world.
Lawsuit Filed Against Coinbase
Crypto investor Jared Ferguson from New York filed a lawsuit against Coinbase after his account credentials were lost as a result of the security breach mentioned earlier on May 2022. The plaintiff argues that since his account password was changed from different IP address and device, there should be some liability on behalf of the encryption exchange company for missing out on unauthorized transactions according Federal and State Laws alike.