Coinbase's Mispricing Allowed Users in Georgia to Cash Out at 100x Rate

Due to an error, Georgia's national currency, the lari (GEL), was priced at $290 instead of $2.90.

Coinbase (COIN) users in the Eastern European country of Georgia were able to pocket thousands of dollars in profits by taking advantage of a pricing error that allowed them to cash out their holdings at 100 times the exchange rate. Georgia's national currency, the lari (GEL), was priced at $290 instead of $2.90 on Wednesday. In an email to CoinDesk, Coinbase attributed the missed decimal point to a "third-party technical issue." The error allowed users holding $100 worth of lari on Coinbase to withdraw it to their bank accounts for $10,000. Some users who were able to take advantage of this reported that their bank accounts and debit cards were frozen by their banks after they transferred their funds, which Coinbase said were not at their disposal. Coinbase said the issue was exploited by 0.001% of its total users, or about 1,000 customers. While the size of the crypto exchange's loss was not disclosed, a spokesperson described it as "a small amount that is not significant." "We have resolved the issue and are taking action to recover the funds improperly withdrawn," the spokesperson said. The mispricing was previously reported by Blockworks. Follow Global Economic Developments on Social Media! Click here to follow Ieconomy official Facebook account! Click here to follow Ieconomy official Instagram account! Click here to follow Ieconomy official Twitter account!