Coinbase: 125,000 users panic after email glitch

Coinbase sent an email to 125,000 users falsely stating that their login settings had been changed. Great panic was the result. After all, the exchange is now paying $100 in bitcoin as compensation.

The past weekend 125,000 users of the crypto exchange Coinbase will certainly not forget so quickly. This is because customers mistakenly received an email on Friday stating that their two-factor authentication (2FA) settings had been changed, as several media outlets have reported in unison. By Sunday, however, Coinbase was able to give the all-clear. The exchange published an apology for the faux pas on Twitter on August 29:

We are focused on building trust and security in the crypto community to make the open financial system we all want a reality. We recognize that issues like this can affect that trust.

Coinbase via Twitter.

For many users, however, Coinbase’s apology already came sadly too late; they had already taken their precautions. They harbored fears that their accounts had been hacked. In addition to updating their security settings, some even undertook a complete liquidation of their crypto holdings. Comments on the exchange’s social media also suggest that some customers were unable to access the Coinbase app for several days after the incident.

Coinbase recently launched new security hotline

However, Coinbase was accommodating and announced that it would compensate users affected by the news with $100 worth of Bitcoin (BTC). In addition to Twitter, the exchange also used the r/Coinbase subreddit to clarify the incident on August 30. Admittedly, the reparation action is not met with enthusiasm by all customers there. However, some users have also learned their lessons from the incident and are thinking positively:

I just received my $100. Thank you Coinbase. Regardless of the situation, it was nice to know how quickly and easily I was able to lock my account when there was some sort of 2FA change.

writes editor “Leagance,” for example.

The incident comes just days after some disgruntled customers claimed their Coinbase accounts had been hacked and emptied. According to an August 24 CNBC report, the users claim that support did not promptly respond to <a href=””>responded to requests for help related to the incident. Just this month, Coinbase announced a new support phone line for customers who notice suspicious activity and believe something is wrong with their account. That line should be glowing by now.