Saturday, October 1

Users panic after Coinbase mistakenly sends 2FA reset notices to customers

Clients of Coinbase, the top U.S. cryptocurrency exchange, spent the weekend in a panic after the exchange mistakenly sent users emails stating that the two-factor authentication settings had been changed ( 2FA).

On August 27, Coinbase accidentally sent the email to 125,000 of its customers, prompting a widespread reaction from the public.

Coinbase took to Twitter on Aug. 29 to apologize for the mishap, saying: “We are focused on building trust and confidence in the crypto community so that the open financial system that we all want becomes a reality. We recognize that issues like this can damage that trust. “

Despite Coinbase’s apology, many of its users reported taking significant action in response to the email while fearing their accounts would be attacked by hackers, including reviewing security settings and liquidate your cryptocurrency holdings.

Comments on the exchange’s social media also suggest that numerous customers were unable to access the Coinbase app for several days after the incident.

“We will continue to work to regain the trust of each of our customers who were affected by those notifications,” Coinbase added.

The firm also announced that it will refund users $ 100 in Bitcoin (BTC).

The exchange posted its apology on the r / Coinbase subreddit on Aug. 30 to mixed. reactions of customers.

Redditor “CoCraic_PNW” claimed that they had not yet received the promised $ 100 credit despite receiving the 2FA message on both Coinbase and Coinbase pro, agreeing to move their business to another exchange in light of the incident.

“Film2021” also stated that they had not yet received the credit worth $ 100 BTC and that they are currently looking to migrate their funds from Coinbase to a rival exchange.

However, not everyone is swinging their pitchforks at Coinbase, and Redditor “Leagance” praises the company for quickly offering compensation for their mistake:

“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 if there was any kind of 2FA change. ”

Related: Bitstamp and Ledger Executives Weigh Customer Service Debate After Coinbase Saga

The incident comes just days after thousands of disgruntled customers were reported to claim that their Coinbase accounts were hacked and emptied.

According to a CNBC story published On August 24, thousands of users claim that Coinbase support has not responded to requests for help related to the alleged incident.

“Interviews with Coinbase customers across the country and a review of thousands of complaints reveal a pattern of account takeover, where users see money suddenly disappear from their account, followed by poor customer service from Coinbase that it made those users feel hung up and angry. ” Wrote CNBC.

Earlier this month, Coinbase announced a new support hotline for customers who believe their account has been hacked.