Coinbase Users in Georgia Could Cash Out Cryptos 100X the Rate

by in Cryptocurrency News

Coinbase crypto Georgia

A technical error in Coinbase resulted in Georgian users' cashing out funds with prices 100 times higher than their actual rates.

Related: Coinbase Plans to Suspend ERC-20 Token Transactions During Merge Update

This happened as the price of the country's official currency, the lari (GEL) was shown at $290 on August 31 instead of $2.90. So, users having $100 worth of lari on the exchange cashed out $10,000.

Some users tweeted later that their bank accounts and cards were frozen by banks after they made transfers.

Financial media Blockworks informs that a Coinbase representative said only a small number of users (0.001% from the overall number) could mistakenly trade and transfer a small amount of funds. The company fixed the glitch and is working on getting the funds back.

Being a centralized exchange, Coinbase requires KYC from the users when they register on the platform. This means that the platform is able to identify users and contact them.