Coinbase users took advantage of the erroneous exchange rate of the Georgian lari on the platform to exchange cryptocurrency at a rate 100 times higher than the market rate (290 lari instead of 2.90 lari), about this writes RBC Crypto. The omission of the decimal separator was due to a “technical problem with a third party,” the exchange told the publication.
The erroneous data was posted on the platform for seven hours. This allowed about 900 traders from Georgia to sell various cryptocurrencies for lari at an overvalued rate, after which they withdraw these funds to bank accounts.
The Georgian trading community estimated that Coinbase could have lost between $14 million and $140 million, but Coinbase denied this claim, the article says.
Shortly after the withdrawal of funds from Coinbase, the bank accounts and associated Visa debit cards of traders were frozen. A report from one of the banks says that the reason for the block is that the transactions were marked as suspicious. Also, the bank reported that Coinbase may request a refund.
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