On Friday, thousands of Coinbase users received a message telling them that their account’s two-factor authentication had been changed. This, as you’d expect, sent many users in a panic, including some who said they sold off their digital assets out of concern their accounts had been compromised. Over the weekend, Coinbase revealed the message was an error.
Coinbase is a popular cryptocurrency platform that allows users to buy, sell, and hold various digital coins, including popular ones like Bitcoin and Ethereum. Users can secure their accounts using two-factor authentication, which adds an extra layer of security by requiring the user to verify they’re the one logged in.
During the evening (Eastern time) on Friday, around 125,000 Coinbase users received a notification telling them that their two-factor authentication settings had been changed. Such a message would typically indicate that the account had been compromised by a third party attempting to steal the crypto holdings.
In this case, however, the messages were due to an error that Coinbase reported the next day, Saturday, through its Twitter account. The company said its team worked to put an end to the accidental message, acknowledging that this kind of mistake can “can hurt that trust” its users have in the platform.
The incident happened only days after a report from CNBC that claimed many Coinbase users have experienced “account takeovers,” with the hackers draining their funds. The users alleged that Coinbase offered poor customer service in response to the complaints; in response, the crypto company said it is in the process of expanding its support options.