August 31, 2021

Coinbase, a cryptocurrency exchange, assured customers that the automated, two-step verification messages sent to 125,000 customers by email and text message were incorrectly sent and not the result of hacker activity.

The cryptocurrency exchange stated its system began sending erroneous messages at 1:45pm Pacific time on Friday and continued until fixed at 3:07pm.

Coinbase spokesman Andrew Schmitt explained the cause of the incident, stating: “All of a sudden, the system just started sending stuff like a bug in the system but it was not a malicious or third party error.”

The messages resulted in many Coinbase customers panic-selling thousands of dollars worth of cryptocurrencies. Unlike most major financial institutions, the platform does not provide insurance against cyberfraud.

For more information, read the original story in Arstechnica.