Coinbase pricing glitch

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Coinbase was founded in June 2012 by Brian Armstrong and Fred Ehrsam. Blockchain.info co-founder Ben Reeves was part of the original team, but later parted ways with Armstrong due to a difference in how the Coinbase wallet should operate.

Coinbase is a digital exchange based in San Francisco, California. The company brokers exchanges of Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, Litecoin, Tezos, and many other cryptocurrencies, with fiat currencies in approximately 32 countries and Bitcoin transactions and storage in 190 countries worldwide.

On Aug. 29, about 1,000 Coinbase users in the country straddling Europe and Asia exploited the “arbitrage opportunity” when the lari, the local currency, was priced at $290 rather than $2.90 for about 6 hours on Coinbase. The group constitutes only 0.001% of the U.S.-based company’s users.

Coinbase is working with law firm Gvinadze & Partners to assist in retrieving the improperly credited funds. At least two of Georgia’s major banks, Bank of Georgia and TBC, froze the accounts of the users who took advantage of the glitch but then unfroze them.