Coinbase Users in Georgia Could Cash Out Cryptos 100X the Rate

A technical error in Coinbase resulted in Georgian users' cashing out funds with prices 100 times higher than their actual rates.

This happened as the price of the country's official currency, the lari (GEL) was shown at $290 on August 31 instead of $2.90. So, users having $100 worth of lari on the exchange cashed out $10,000.

Some users tweeted later that their bank accounts and cards were frozen by banks after they made transfers.

Financial media Blockworks informs that a Coinbase representative said only a small number of users (0.001% from the overall number) could mistakenly trade and transfer a small amount of funds. The company fixed the glitch and is working on getting the funds back.

Being a centralized exchange, Coinbase requires KYC from the users when they register on the platform. This means that the platform is able to identify users and contact them.