Cryptocurrency exchange Coinbase cooperates with the Georgian government to recover lost funds

To recover the funds lost due to a technical error, the cryptocurrency exchange Coinbase is cooperating with the main national banks of Georgia.

As it has become known, Bank of Georgia and TBC Bank have frozen bank accounts and debit cards of users who took advantage of Coinbase’s mistake and withdrew assets 100 times higher than the current exchange rate to their bank accounts. The situation with the blocking of accounts was reported by users who managed to take advantage of the «favorable» moment. Interestingly, Coinbase said that it did not provide banks with such a recommendation.

On Wednesday, August 31, Georgia’s national currency, 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. Although the amount of Coinbase’s loss was not disclosed, a spokesperson for the exchange called it «an insignificant amount.»

Crypto trading is widespread in Georgia and many Caucasus countries. Cryptomats are commonplace in Tbilisi shopping centers, where many cryptocurrency investors live. According to the World Bank, in 2018, about 5% of the Georgian population either mined digital assets or invested their own savings in them. This figure is likely to be higher in 2022.