Coinbase, which is the largest exchange in the US, had a bug in its Ethereum Smart contract, which would have made it possible to steal an infinite amount of ETH. VI Company, a Dutch-based company, brought the flaw to light. For their effort, Coinbase awarded them a $10,000 bounty.
Ethereum Smart Contract Bug On Coinbase Discovered
According to the findings by VI Company, this bug would have made it possible for anyone to send himself or herself an unlimited amount of ETH at will. The good thing about this bug is that no one ever caught wind of it before it was resolved. The VI Company reported the issue to Coinbase on December 27, and the exchange resolved the issue in just four weeks.
Over the past few months, Coinbase has been suffering from many issues. In recent weeks, two class action suits were filed against them for insider trading and holding unclaimed digital assets. The exchange has also launched its own index fund, got two major deals in the UK, added SegWit support, and introduced a community-building team.
Free ETH For Anyone
According to the report, anyone with the right technical knowledge would have been able to exploit the flaw and reward themselves huge amounts of ETH. The crypto market is still young compared to the fiat markets. Even these markets usually face some issues from time to time. Despite the fact that blockchain technology is tamper-proof, the supporting technology used in exchanges is not. Coinbase will need to resolve such issues as they arise.