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Coinbase erroneously notified 125,000 users that their two-factor authentication settings had been updated in an email.
Customers of the main cryptocurrency exchange in the United States, Coinbase, have spent the weekend terrified after the exchange accidentally sent emails to consumers indicating that their two-factor authentication (2FA) settings had been modified.
On Friday, Coinbase accidentally sent the email to 125,000 of its customers, resulting in widespread public backlash.
Coinbase took to Twitter on Sunday to apologize for the mishap, stating, “We’re laser-focused on building trust and security into the crypto community so that the open financial system we all want is a reality. We recognize that issues like this can hurt that trust.”
Yesterday, from 1:45pm PST to 3:07pm PST, Coinbase sent roughly 125,000 customers erroneous notifications that their 2FA settings had changed.
— Coinbase 🔜 #CoinBeastSweepstakes (@coinbase) August 28, 2021
Despite Coinbase’s apology, many of its users reported taking significant measures in response to the email while fearing that their accounts were being targeted by hackers, including overhauling security settings and liquidating their crypto 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.
Still can’t use app.
— Amy Falk (@amygfalk) August 28, 2021
“We will continue to work to gain back the trust of every one of our customers who was impacted by those notifications,” Coinbase added.
The firm also announced it is reimbursing users with $100 worth of Bitcoin (BTC).
The exchange posted its apology in the r/Coinbase subreddit on Monday to mixed reactions from customers.
Redditor u/CoCraic_PNW claimed they were yet to receive the promised $100 credit despite having received the 2FA message on both Coinbase and Coinbase Pro, pledging to move their business to another exchange in light of the incident.
Additionally, u/Film2021 also stated that they were yet to receive the $100 BTC worth of credit and are currently looking to migrate their funds from Coinbase to a rival exchange.
However, not everyone at Coinbase is carrying pitchforks, with Redditor u/Leagance thanking the company for quickly paying compensation for its error:
“I just received my $100. Thank you, Coinbase. Regardless of the circumstances, it was comforting to know how fast and easily I could lock down my account if there was a change in 2FA.”
The incident comes only days after hundreds of dissatisfied Coinbase customers claimed their accounts were hacked and emptied.
According to a CNBC story published on Aug. 24, thousands of users assert that Coinbase’s support has failed to respond to requests for help relating to the alleged incident.
“Interviews with Coinbase customers around the country and a review of thousands of complaints reveal a pattern of account takeovers, where users see money suddenly vanish from their account, followed by poor customer service from Coinbase that made those users feel left hanging and angry,” CNBC wrote.
Coinbase introduced a new help phone line earlier this month for users who feel their account has been hijacked.