• Users are in a panic after Coinbase accidentally sends 2FA reset notices to customers

  • Customers of Coinbase, the top cryptocurrency exchange in the United States, have spent the weekend terrified after the exchange accidentally sent emails to consumers indicating that their two-factor authentication (2FA) settings had been modified.

    On August 27, Coinbase sent the email to 125,000 of its customers by mistake, resulting in massive public outrage.

    On Aug. 29, Coinbase apologized on Twitter, saying, “We’re laser-focused on building trust and security into the crypto community so that the open financial system we all want becomes a reality.” We understand that incidents like this can erode trust.”

    Despite Coinbase’s apology, many of its users reported taking significant steps in response to the email, including overhauling security settings and liquidating their crypto holdings, out of fear that their accounts were being targeted by hackers.

    According to comments on the exchange’s social media, many customers were unable to access the Coinbase app for several days following the incident.

    “We will continue to endeavor to reestablish the trust of all of our clients who were impacted by those notifications,” Coinbase added.

    The company has said that it will reimburse subscribers with $100 in Bitcoin (BTC).

    On August 30, the exchange apologized in the r/Coinbase subreddit, eliciting varied comments from customers.

    Redditor “CoCraic PNW” said they have failed to receive the promised $100 credit after receiving the 2FA notice on both Coinbase and Coinbase Pro, threatening to shift their business to another exchange in the aftermath of the incident.

    “Film2021” also stated that they have yet to receive the $100 BTC credit and are looking to move their funds from Coinbase to a rival exchange.

    However, not everyone at Coinbase is wielding a pitchfork, with Redditor “Leagance” praising the company for quickly offering compensation for its error:

    “I just received my $100. Thank you, Coinbase. Regardless of the circumstances, it was comforting to know how quickly and easily I could lock down my account if there was a change in 2FA.”

    The incident comes just days after thousands of disgruntled Coinbase customers claimed their accounts were hacked and emptied.

    On August 24, thousands of users claim that Coinbase’s support has failed to react to requests for assistance on the claimed event.

    “Interviews with Coinbase customers across the country, as well as a review of thousands of complaints, reveal a pattern of account takeovers, in which users see money suddenly vanish from their account, followed by poor customer service from Coinbase, leaving those users feeling left hanging and angry,” CNBC wrote.

    Coinbase introduced a new help phone line earlier this month for users who feel their account has been hijacked.

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