Coinbase Prevented Users from Sending $285k in Bitcoin to Twitter Hackers


Data shows that the impacts of the recent Twitter hack were fairly limited, with a small handful of users sending just over $100,000 worth of Bitcoin to the address shilled as part of a classic crypto giveaway scam.

According to recent reports, it appears that the impacts of the scam were almost far greater than this, however, as cryptocurrency exchange Coinbase stopped over 1,100 customers from sending BTC to the hackers.

This news highlights both the benefits and flaws of centralized exchanges.

Impacts of Recent Twitter Hack Limited

Last week, the world was on the edge of their seats as they watched the Twitter accounts of some of the most prominent individuals and companies fall under the control of hackers.

The hackers used these accounts to shill classic crypto scams, in which they told the account’s followers that they would send back double the Bitcoin that was sent.

Despite this sham being put in front of hundreds of tens of millions of onlookers, the impacts were fairly limited.

According to a recent report from analytics firm Elliptic, a total of $121,000 worth of Bitcoin was sent in just over 400 payments.

This means that it was likely far less than 400 people who actually sent crypto, as some individuals may have sent multiple transactions.

One individual sent a total of $42,000 worth of Bitcoin in a single transaction from a Japan-based exchange.

“Payments from Asia-based exchanges dominate, although this includes one single very large payment originating from a Japan-based exchange, worth $42,000,” Elliptic noted.

Report: Coinbase Blocked $285k Worth of Bitcoin from Being Sent

According to a recent report, as soon as Coinbase became apprised of the situation, they began blocking transactions from their platform to the hacker’s wallet.

In total, they claim to have blocked 1,100 customers from sending 30.4 Bitcoin to the address associated with the scam.

Prior to them blacklisting the address, 14 of their users were able to send $3,000 worth of BTC.

The actions taken by the exchange did prove to be beneficial for users, but it also highlights the sheer control the platform has over its clients’ Bitcoin.

Some Bitcoin advocates are now growing concerned that major exchanges can start censoring transactions – which negates the entire credo underpinning Bitcoin.

While speaking to Forbes, Coinbase’s chief information officer – Philip Martin – explained that they are operating on the base principle of trying to reduce harm to users without reducing the asset’s utility.

“The principle that we want to pay attention to is harm reduction without reducing the underlying utility of the asset,” he explained.

Featured image from Unsplash.

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