Oh sh-itcoin! Crypto-dosh swap-shop Coinbase empties punters' bank accounts

Says sorry for 'poor experience', vows to pay back missing cash


Digital currency exchange Coinbase said it inadvertently charged punters for transactions they never made, effectively draining money from their bank accounts. It has promised to refund the money taken.

For the past few days, netizens have been complaining that funds had vanished from bank accounts linked to Coinbase without reason. Some people report multiple charges being made that drained their accounts and left them with heavy overcharge fees and the inability to pay bills and rent.

"We can confirm that the unexpected charges are originating from our payment processing network, and are related to charges from previous purchases," a company rep called Olga said on Reddit.

"To the best of our knowledge, these unexpected charges are not permanent and are in the process of being refunded. We apologize for the poor experience."

Rather bizarrely the post also asks those people affected by the errors to post up details of the transactions, including their location, the bank used, the number of bogus charges, and the case number from the bank. From a security situation, that's very poor practice indeed.

The spokesperson went on to say that the issue wasn't a security incident, meaning that Coinbase hasn't been hacked. Instead it was down to a charging issue with payment processors and they promised a fuller explanation in the next 24 hours.

That's going to be cold comfort for some of the people who have been affected. The message board went red with people who were now penniless and facing bank charges and possible eviction because they have no rent money.

Although you have to wonder if gambling the rent money on digital currency was a wise move. That said, a survey last month showed only 39 per cent of Americans could raise $1,000 to cover an emergency bill, so people's financial trauma from being overcharged is slightly more understandable. ®

Similar topics


Other stories you might like

  • Bill Gates says NFTs '100% based on greater fool theory' amid crypto cataclysm
    Plus: Non-fungible tokens for dummies

    Comment Microsoft co-founder Bill Gates has declared that "expensive digital images of monkeys are going to improve the world immensely."

    He was joking, obviously, though considering Gates's supposed connection to microchips in vaccines, one can never be too careful. What he's talking about are non-fungible tokens (NFTs), which came up at a TechCrunch event in Berkeley, California, on Tuesday. Specifically the Bored Ape Yacht Club variety.

    You know those kids' books where the picture is divided into three (head, body, legs) so you can turn different sets of pages to get a different image? That's what the Bored Ape Yacht Club is for those willingly parted from large amounts of money for the right to stand next to a picture of a cartoon chimp.

    Continue reading
  • Japan lets its banks and other entities issue stablecoins
    Wants private coins to have face value in Yen by 2023

    Japan's parliament has passed legislation allowing Yen-linked stablecoin cryptocurrencies, thus becoming one of the first countries – and by far the largest economy – to regulate a form of non-fiat digital money.

    The regulations stipulate that only banks and other registered financial institutions – like money transfer agents and trust companies – can issue the alterna-cash. Intermediaries, or those who are responsible for the circulation of the currencies, will be required to adopt stricter anti-money-laundering measures. The rules also define stablecoins as digital money and guarantee face value redemption.

    Japan's Financial Services Agency (FSA) floated this regime in a March 2021 proposal. Parliamentary assent for the proposal means it will come into effect in 2023. The regulations will apply to domestic financial institutions as well as foreign operations that target Japanese users. The research material supporting the decision relied heavily on trends in the US and Europe.

    Continue reading
  • Clipminer rakes in $1.7m in crypto hijacking scam
    Crooks divert transactions to own wallets while running mining on the side

    A crew using malware that performs cryptomining and clipboard-hacking operations have made off with at least $1.7 million in stolen cryptocurrency.

    The malware, dubbed Trojan.Clipminer, leverages the compute power of compromised systems to mine for cryptocurrency as well as identify crypto-wallet addresses in clipboard text and replace it to redirect transactions, according to researchers with Symantec's Threat Intelligence Team.

    The first samples of the Windows malware appeared in January 2021 and began to accelerate in their spread the following month, the Symantec researchers wrote in a blog post this week. They also observed that there are several design similarities between Clipminer and KryptoCibule – another cryptomining trojan that, a few months before Clipminer hit the scene, was detected and written about by ESET analysts.

    Continue reading
  • Even Russia's Evil Corp now favors software-as-a-service
    Albeit to avoid US sanctions hitting it in the wallet

    The Russian-based Evil Corp is jumping from one malware strain to another in hopes of evading sanctions placed on it by the US government in 2019.

    You might be wondering why cyberextortionists in the Land of Putin give a bit flip about US sanctions: as we understand it, the sanctions mean anyone doing business with or handling transactions for gang will face the wrath of Uncle Sam. Evil Corp is therefore radioactive, few will want to interact with it, and the group has to shift its appearance and operations to keep its income flowing.

    As such, Evil Corp – which made its bones targeting the financial sector with the Dridex malware it developed – is now using off-the-shelf ransomware, most recently the LockBit ransomware-as-a-service, to cover its tracks and make it easier to get the ransoms they demand from victims paid, according to a report this week out of Mandiant.

    Continue reading

Biting the hand that feeds IT © 1998–2022