Coinbase Ethereum Address Typo Miserable_Earth5856

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Coinbase

Reddit user Miserable_Earth5856 reports sending 0.5 ETH to one of CoinBase's hot wallets directly, as opposed to sending the funds to their proper deposit address. Blockchain transactions are irreversible, however these funds were sent to a wallet actively operated by the CoinBase platform.

Different Reddit users had different guesses as to whether the funds were recoverable or not. CoinBase did request the user reach out to support in a response half a week later. There is no indication of the outcome of this case.

This is a global/international case not involving a specific country.

About Coinbase

"Coinbase is a secure platform that makes it easy to buy, sell, and store cryptocurrency like Bitcoin, Ethereum, and more." "As the leading mainstream cryptocurrency exchange in the United States, Coinbase has become a standard on-ramp for new crypto investors. Coinbase offers a wide variety of products including cryptocurrency investing, an advanced trading platform, custodial accounts for institutions, a wallet for retail investors, and its own U.S. dollar stable-coin."

"Coinbase was founded in 2012 and is a fully regulated and licensed cryptocurrency exchange supporting all U.S. states except Hawaii. Coinbase initially only allowed for Bitcoin trading but quickly began adding cryptocurrencies that fit its decentralized criteria." "Its list expanded to include Ethereum, Litecoin, Bitcoin Cash, XRP, and many others with the promise of more as long as its requirements are met."

On October 1st, 2021, Reddit user Miserable_Earth5856 reported they "lost a lot money today using Coinbase and need urgent help from the Customer Support."

"Today I transferred funds from my Coinbase Pro Wallet to my Metamask Extension. I wanted to send back the money to my Coinbase later today so I copy pasted the ad[d]ress I received the coins from earlier today." "After I sent I noticed that Coinbase using another wallet to send the coins so I sent the coins to the Coinbase sending wallet called Coinbase 4 wallet."

"[I] definitely learned my lesson for the future. Still can’t afford this loss it’s a lot of money for me." "Totally agree with you it been stupid to not double check [the address]. Usually using Binance where sending and receiving is the same. Learned my lesson but still can’t afford this loss so I hope customer service can help me with this. Still thanks for your words sir!"

Reddit users destrukkt had a bleak outlook: "Sadly they don’t send funds received at that wallet and won’t do it. People have lost hundreds of thousands and they don’t help."

Reddit user TheHonestParrot was more optimistic: "If you had sent it to a regular person, it would be gone. But I am hoping that since you sent it to one of Coinbase's accounts, that they can figure it out, and send you majority of what you sent them. That is definitely a lot of money."

CoinBase responded on October 4th, "Hello u/Miserable_Earth5856 - Thanks for reaching out. We are sorry to hear you are having trouble transferring your tokens. If you would please a support case here, we can take a look. Thank you!" No further information is available.

This is a global/international case not involving a specific country.

The background of the exchange platform, service, or individuals involved, as it would have been seen or understood at the time of the events.

Include:

• Known history of when and how the service was started.
• What problems does the company or service claim to solve?
• What marketing materials were used by the firm or business?
• Audits performed, and excerpts that may have been included.
• Business registration documents shown (fake or legitimate).
• How were people recruited to participate?
• Public warnings and announcements prior to the event.

Don't Include:

• Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.
• Anything that wasn't reasonably knowable at the time of the event.

There could be more than one section here. If the same platform is involved with multiple incidents, then it can be linked to a main article page.

The Reality

This sections is included if a case involved deception or information that was unknown at the time. Examples include:

• When the service was actually started (if different than the "official story").
• Who actually ran a service and their own personal history.
• How the service was structured behind the scenes. (For example, there was no "trading bot".)
• Details of what audits reported and how vulnerabilities were missed during auditing.

What Happened

The specific events of the loss and how it came about. What actually happened to cause the loss and some of the events leading up to it.

Key Event Timeline - Coinbase Ethereum Address Typo Miserable_Earth5856

Date	Event	Description
October 1st, 2021 2:24:31 PM MDT	Main Event	Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.

Technical Details

This section includes specific detailed technical analysis of any security breaches which happened. What specific software vulnerabilities contributed to the problem and how were they exploited?

Total Amount Lost

The total amount lost has been estimated at $2,000 USD.

How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?

Immediate Reactions

How did the various parties involved (firm, platform, management, and/or affected individual(s)) deal with the events? Were services shut down? Were announcements made? Were groups formed?

Ultimate Outcome

What was the end result? Was any investigation done? Were any individuals prosecuted? Was there a lawsuit? Was any tracing done?

Total Amount Recovered

The total amount recovered is unknown.

What funds were recovered? What funds were reimbursed for those affected users?

Ongoing Developments

What parts of this case are still remaining to be concluded?

General Prevention Policies

Unfortunately, in the blockchain, the onus is on the user to triple check that they are sending funds to the correct address. It's a good idea whenever sending to a new recipient such as a wallet or exchange to always sent a test transaction for a smaller amount first.

Exchanges or wallets could assist by providing a prominent test transaction feature, and making a clear suggestion.

Individual Prevention Policies

No specific policies for individual prevention have yet been identified in this case.

For the full list of how to protect your funds as an individual, check our Prevention Policies for Individuals guide.

Platform Prevention Policies

Policies for platforms to take to prevent this situation have not yet been selected in this case.

For the full list of how to protect your funds as a financial service, check our Prevention Policies for Platforms guide.

Regulatory Prevention Policies

No specific regulatory policies have yet been identified in this case.

For the full list of regulatory policies that can prevent loss, check our Prevention Policies for Regulators guide.