Coinbase Threatens to Sue Crypto Traders Who Profited From Pricing Glitch

Coinbase, the world’s second-largest cryptocurrency trading platform by volume, is hinting it may sue about 1,000 users in the republic of Georgia for taking advantage of a pricing glitch.

On Aug. 29, about 1,000 Coinbase users in the country straddling Europe and Asia exploited the “arbitrage opportunity” when the lari, the local currency, was priced at $290 rather than $2.90 for about six hours on Coinbase. The group constitutes only 0.001% of the U.S.-based company’s users.

The glitch was a fault of a “third party,” Coinbase told CoinDesk then, without identifying the company. As such, the incident illustrates a longstanding concern of financial regulators: The risks posed to institutions by external partnerships.

Source: Coinbase Threatens to Sue Crypto Traders Who Profited From Pricing Glitch