The world’s second-largest cryptocurrency exchange platform, Coinbase, is threatening to sue 1,000 crypto traders who benefited from a pricing error.
Around August 29, users of Coinbase based in Europe and Asia took advantage of the “arbitrage opportunity” when the local currency, Iari, was $290 rather than $2.90 for about 6 hours. This error was explained by Coinbase to be a mistake of a third party without exploiting the company’s name.
Due to this error, users were able to withdraw 100X more funds. Some users with $100 worth of Iari could withdraw $10,000. Because of this, Coinbase lost a lot of money. According to some reports, immediately after they sold crypto for Iari and withdrew fiat to their bank accounts, the accounts of these 1,000 crypto traders were frozen and unfrozen several hours after, without taking any action.
However, the platform is working with the law firm Gvinadze & Partners, which is helping in refunding the improperly credited funds and plans on taking legal action against these individuals.