The main US provider of exchange and cryptocurrency services Coinbase has rewarded a Dutch company with a reward of $ 10,000 after discovering a smart contract problem that allows users to steal “everything they want” in Ethereum (ETH), according to a report made public today. March 21st.
The problem, which VI Company reported to Coinbase on December 27 last year, revolved around the exploitation of an intelligent contract involving a defective wallet.
The users were technically able to be credited with unlimited ETH funds. “By using an intelligent contract to distribute ether over a set of wallets, you can manipulate the balance of your Coinbase account,” company VI described in the report, continuing:
“If one of the internal transactions in the smart contract fails, all previous transactions will be reversed, but in Coinbase these transactions will not be reversed, which means that someone could add as much ether to their balance as they want.”
Coinbase has faced continuous technical difficulties for almost a year. From the massive influx of new users in mid-2017, the technical capabilities of the largest ticket and ticketing providers in the US. They have been reduced, which has caused delays and lack of funds, interruptions of the system and other problems.
Despite promises to increase performance, the reaction to an error that technically could have exhausted billions of dollars in cryptocurrencies is blunt; Coinbase only solved the problem one month after the original report of January 26.
“The analysis of the problem indicated only accidental loss for Coinbase and no attempt at exploitation,” he wrote as part of his comment.
Gaps of this type have previously affected the main companies that interact with the cryptocurrency. In January, an error on the Overstock.com website, which allowed users to pay and request refunds in Bitcoin (BTC) or Bitcoin Cash (BCH), resulting in huge savings or huge profits. Overstock uses the Coinbase Merchant Integration API.