Coinbase will sue Georgians who took advantage of a technical error and withdrew 100 times more cryptocurrency

The American cryptocurrency exchange Coinbase-pidtrymala-regulyuvannya-bitkoyina-ta-efiriuma-uryadom-ssha/">Coinbase may sue 1000 of its Georgian customers — some users took advantage of a Coinbase error and withdrew assets to their bank accounts at 100 times the exchange rate.

According to a representative of the exchange, Coinbase is currently working with the law firm Gvinadze & Partners to return their funds. So far, there are no official statements about the start of legal proceedings, but according to an anonymous representative of the platform, «We cannot comment on the status of specific claims or lawsuits. However, users who return unlawfully credited funds will not be involved in further legal proceedings.» Users took these words as a hint of possible legal action if customers do not return the funds.

An unpleasant incident for Coinbase occurred at the end of August this year: the national currency of Georgia, the GEL, was worth $ 290 on the crypto exchange, not $ 2.90 (the real exchange rate). Coinbase explained the missed decimal point as a «technical issue with a third party.» In total, 0.001% of the total number of crypto exchange users took advantage of the situation, which is about 1000 customers.

A few days later, it became known that the exchange cooperated with the main national banks of Georgia. Bank of Georgia and TBC Bank froze the bank accounts and debit cards of users who took advantage of Coinbase’s mistake. Interestingly, at the time, Coinbase said that it had not given banks such a recommendation.