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Coinbase ($COIN)

Coinbase Admits Getting Compromised: At Least 6,000 Users Affected

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At least 6,000 Coinbase users have been robbed from their cryptocurrency or fiat funds between March and May this year.

The largest US-based cryptocurrency exchange has admitted to being exploited earlier this year when hackers stole assets from approximately 6,000 users. The company vowed to reimburse all affected users.

  • According to a copy of the letter sent to the affected customers, which was available on the website of California’s Attorney General, the exploits took place somewhere between March and May 20th this year.
  • It reads that an unauthorized third party had gained access to the accounts of at least 6,000 Coinbase clients and drained an undisclosed amount of funds from there.
  • The exchange explained that the security breach became possible because the perpetrators had “prior knowledge of the email address, password, and phone number” associated with each account.
  • The letter said that Coinbase has failed to determine how “these third parties gained access to this information.” It explained that these types of activities typically involve phishing attacks or other social engineering techniques to “trick a victim into unknowingly disclosing login credentials to a bad actor.”
  • Although Coinbase asserted that even if the perpetrators had access to the aforementioned information, they would still need additional authentication to access the accounts. However, the two-factor authentication through SMS texts had a flaw, which they were able to exploit.
  • “The third party took advantage of a flaw in Coinbase’s SMS Account Recovery process in order to receive an SMS two-factor authentication token and gain access to your account.”
  • Ultimately, the perpetrators were able to transfer the funds out of the compromised accounts.
  • The exchange promised it had upgraded its authentication and other security protocols. Additionally, Coinbase vowed to deposit funds into the affected account “equal to the value of the currency improperly removed” during the time of the incidents.
  • Some customers have already received the reimbursement, while the remaining should be completed “no later than today.”
  • It’s worth noting that these incidents had taken place approximately at the same time when the giant exchange became a publicly traded company. Coinbase’s shares went live for trading on Nasdaq in April this year.

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Coinbase ($COIN)

Coinbase Joins the NFT Craze: Plans to Launch Its Own Marketplace

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Coinbase becomes the next digital asset exchange to launch its own non-fungible token marketplace.

The leading American cryptocurrency platform – Coinbase – said it will launch a peer-to-peer non-fungible token marketplace called Coinbase NFT. Users can join a waitlist for early access and regular updates.

Coinbase Expanding into The NFT Universe

In a recent blog post, one of the largest digital asset exchanges revealed it will enable its customers to mint, purchase, showcase, and discover non-fungible tokens on a new platform – Coinbase NFT and offered some details on how it will work.

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“We’re making NFTs more accessible by building user-friendly interfaces that put the complexity behind the scenes. We’re adding social features that open new avenues for conversation and discovery. And we’re going to grow the creator community exponentially, a win for artists and for fans.”

Coinbase noted that the initial launch will support Ethereum-based ERC-721 tokens, while later on, it intends to bring on ERC-1155 standards with multi-chain support.

The cryptocurrency exchange added that people have the desire to express their talent and individuality. As such, non-fungible tokens represent a “universal way for creators to own, control, and benefit from their creations.”

As of the moment, the largest digital marketplace for crypto collectibles and non-fungible tokens is OpenSea. This summer, the decentralized platform recorded a massive milestone, as its trading volume hit the $1 billion mark in August, which was an increase of nearly 1,000% year-on-year.

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FTX Also Dived into The NFT Craze

It is worth noting that another giant digital asset exchange – FTX – also recently launched its non-fungible token marketplace. Initially, the trading venue allowed only US-based customers to join in.

Named Solana NFT Marketplace, digital collectibles on the new platform must be on the Solana blockchain. However, FTX has plans to support Ethereum-based tokens in the near future, which are the industry standard.

Many celebrities, actors (Lindsay Lohan), musicians (Eminem), and prominent sportsmen (Tom Brady) have recently shown interest in non-fungible tokens or have even introduced their own digital collection. FTX outlined that trend and raised hopes that the Solana NFT Marketplace would be a top choice in its field:

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“We decided to create an NFT marketplace on FTX US after becoming immersed ourselves in the NFT ecosystem. The NFT ecosystem has started to infiltrate pop culture, but has been lacking a platform that provides easy access and exposure to the mainstream audience.”

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Just-In: Coinbase ($COIN) Files For Crypto Futures Offerings

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Coinbase Inc ($COIN), one of the top global crypto exchanges based out of New York has filed with the National Futures Association (NFA) to offer crypto futures services. The crypto exchange filed the application on September 15 and if approved it would join the likes of FTX.US who recently acquired a CFTC approved derivative platform ledgerX to offer crypto derivative services to their clients. The exchange said,

“This is the next step to broaden our offerings and offer futures and derivatives trading on our platforms. Goal: Further grow the crypto economy.”https://twitter.com/coinbase/status/1438247595877416962?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1438247595877416962%7Ctwgr%5E%7Ctwcon%5Es1_c10&ref_url=https%3A%2F%2Fcoingape.com%2Fjust-in-coinbase-coin-files-for-crypto-futures-offerings%2F

The crypto exchange claimed that once approved, the new offerings would help them expand their crypto services and also help in the growth of the crypto economy. Once approved by the NFA, the crypto exchange would then need the clearance of CFTC as well to get a green light for their crypto futures offerings.

The US regulators have been quite passive towards crypto derivative offerings and this is the reason there are very few crypto platforms that have been approved to do so. The major concern of regulators is the high trading leverage that many of the crypto exchanges used to offer. CFTC in the past has investigated Binance for the same.

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While the US remains cautious about the crypto derivative market, the world seems to be getting on the trend and crypto derivatives have dwarfed the crypto spot market. Over the past 24-hours crypto derivative platforms processed over $143 billion in trading volume.

Can Coinbase Get a Nod Amid Regulatory Tensions?

Coinbase went public in April this year marking the beginning of a new era of publically traded crypto companies. However, its public debut was delayed due to an investigation by the CFTC and was later cleared with a fine. Now, Coinbase is facing another regulatory hurdle from the US SEC, the top US regulatory body that has threatened the crypto exchange with a lawsuit over their unreleased lending product.

The crypto platform has vowed to work with regulators but at the same time has demanded better clarity around existing regulations. Coinbase has the potential to become a market leader if it manages to get the crypto derivative nod.

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