- Coinbase priced the lari, Georgia's national currency, at $290 instead of $2.90
- Around 1,000 people exploited the issue
Coinbase users in Georgia, a former Russian satellite and Eastern European country, could take advantage of a price bug, enabling them to withdraw funds 100 times the actual exchange rate. Some made a profit worth thousands of dollars, CoinDesk reported.
Mispricing the exchange rate and its consequences
Coinbase priced the lari, Georgia’s national currency, at $290 instead of $2.90 on Wednesday. The exchange attributed the mistake to a technical issue, for which a third-party was to blame.
In practice, someone holding lari worth $100 on Coinbase could withdraw it to their bank account for $10,000.
Banks freeze accounts
After banks transferred users’ funds, some users reported their cards and bank accounts had been frozen. Coinbase did not order any banks to do this. According to the exchange, around 1,000 people exploited the issue, corresponding to a thousandth of its total users.
A Coinbase spokesperson described the loss as non-material without disclosing the exact amount. They said the issue had been fixed and Coinbase was taking action to retrieve the improperly withdrawn funds.
Blockworks reported the mispricing earlier.
