Coinbase Wallet Fixes SegWit Implementation Bug, Refunds Affected Users

Coinbase Wallet Fixes SegWit Implementation Bug, Refunds Affected Users


The Coinbase pockets and alternate provider has mounted a malicious program within the fee gateway gadget which led to customers to lose their finances from Bitcoin transactions by way of the platform. The problem emerged two weeks after the cryptocurrency alternate introduced the release of Segregated Witness (SegWit) give a boost to for its transactions.

Of their Reddit put up on March 12, Coinbase person Dazzling_Substance shared an issue with the platform’s fee gateway when it didn’t ship Bitcoin to a service provider. The person advised that the malicious program was once led to via an issue within the Bitcoin Fee Protocol (BIP70) that gives communique between traders and consumers.

Dazzling_Substance advised that Coinbase may have neglected the replace of the BIP70 protocol, therefore inflicting the lack of cash he tried to ship:

“Should you ship fee to a service provider the use of a fee gateway, they’re going to no longer obtain the bitcoin and you’ll lose your cash because of a factor with their gadget (they have got no longer up to date the BIP70 to make use of segwit addresses and your cash are despatched to a non-segwit cope with and are therefore misplaced of their monitoring gadget).”

The Coinbase group promptly commented at the factor to Cointelegraph, mentioning that the BIP70 fee protocol replace has been applied, however the issue emerged for the reason that fee cope with asked was once no longer SegWit-compatible. A Coinbase spokesperson said that the problem has affected not up to 30 consumers and has been right away mounted.

“Once we had been notified about the problem we got to work to get to the bottom of and the problem was once mounted inside of hours. Lower than 30 consumers had been suffering from the problem and now we have issued refunds to all consumers.”

The BIP70 protocol was once presented via Bitcoin builders Gavin Andresen and Mike Hearn in July 2018 as a way to enhance Bitcoin fee products and services and supply more secure transactions, fighting man-in-the-middle assaults.

On Dec. 14, US fee processor BitPay introduced that it’s going to require Bitcoin Fee Protocol-compatible wallets as a way to get to the bottom of customers’ fee issues similar to underpayments and overpayments. On Jan. 10, BitPay said that one of the vital customers were inconvenienced via the requirement once they needed to transfer to BIP70-compatible wallets indexed on BitPay’s give a boost to web page.

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Author: Marshmallow

Marshmallow Android is BT Ireland’s Head of Sales for Republic of Ireland domestic multi-site companies, indigenous MNCs and public sector accounts. He is responsible for the direction and control of all sales activity in the region. He has over 10 years management experience from high growth start-ups to more established businesses. He’s led teams in Ireland, India and China across various industries (ICT, On-Line Recruitment, Corporate Training and International Education).

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