Friday, 14 December, 2018

Did Coinbase Drain Your Bank Account?

The top posts in the Coinbase community on Reddit at 2:15PM on Feb. 15 2018.                  Screenshot by Sean Hollister  CNET The top posts in the Coinbase community on Reddit at 2:15PM on Feb. 15 2018. Screenshot by Sean Hollister CNET
Nellie Chapman | 18 February, 2018, 12:46

Users complained that they'd been left without money for food after the borkage.

Angered customers have been complaining on Reddit for several days that the exchange continues to make unauthorized charges. Offering to pay your rent in Bitcoin that will be worth 20 percent more or less tomorrow might not go over well. Another user, going by the name ipizi on Reddit, was charged $67 000 (50 times the price).

Since many major banks in the U.S have banned cryptocurrency purchases, individuals have had to link their actual bank accounts to Coinbase. The credit card processor didn't update its codes in time and had to reprocess large numbers of transactions. For some users who bought a couple hundred in cryptocurrency, this was enough to push their account into the red and lead to overdraft fees. After keeping quiet for about a day or so and only occasionally responding on the threads, on Friday Coinbase has finally published an official blog post admitting to "erroneous charges". One Coinbase client was charged 17 times for a $1,000 purchase. "I was charged $300 across the 3 transactions".

It's important to note, the users were not getting additional cryptocurrency after the repeated transactions. "We have identified a solution and any future purchases will not be affected by this issue". If you continue to have problems with your credit or debit card account after this reversal period, including issues relating to card fees or charges, we encourage you to contact your card issuing bank.

According to the The Verge, these complaints started around two weeks ago, but have intensified in the past 24 hours.

Still, one thing is clear: The glitch would never have happened if the banks hadn't chose to treat Coinbase purchases as cash advances-despite the fact that the US government does not now consider cryptocurrencies currency at all. However, the only ill effect so far appears to be that it broke Coinbase's platform and resulted in duplicate charges. Visa, following that statement, released its own which said they were not one of the companies that had done so. Meaning that users can still go about their cryptocurrency trading using their debit cards and direct bank transfers. If you have a Coinbase account and are buying crypto then you might want to keep an eye on your bank account.