Due to Coinbase’s mechanical error, cryptocurrency exchange customers increased their assets 100 times

Users of the cryptocurrency exchange Coinbase in Georgia were able to exploit a price error that allowed them to transfer their exchange assets 100 times higher than the current exchange rate. Georgians made thousands of percent profit.

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.» Thus, the mistake allowed users who owned $ 100 worth of GEL on Coinbase to withdraw the equivalent of $ 10,000 to their bank account. However, some users who were able to take advantage of the «profitable» moment reported that their bank accounts and debit cards were blocked by banks after the transfer. Coinbase said that it did not provide banks with such a recommendation.

In total, 0.001% of the total number of crypto exchange users took advantage of Coinbase’s mistake, which is about 1000 customers. Although the amount of Coinbase’s loss was not disclosed, a spokesperson called it «an insignificant amount.»