1. PixelPlaygroundHome
  2. Web3 News

Technical Error in Coinbase Results in Bitcoin Transfer Blockage

• Web3 News • 181 views

It is reported that a technical problem in Coinbase has led to the blocking of some transactions transferring Bitcoin from Coin. Users on Reddit and Twitter re…

Technical Error in Coinbase Results in Bitcoin Transfer Blockage

It is reported that a technical problem in Coinbase has led to the blocking of some transactions transferring Bitcoin from Coin. Users on Reddit and Twitter reported late Tuesday that when they tried to transfer Bitcoin from Coin to Coinbase, they received a notice from the Office of Foreign Assets Control (OFAC) of the US Treasury Department saying that their transfer was blocked because it came from the “OFAC sanctioned address”.

Coinbase’s BTC transfer was blocked due to technical problems, which has been repaired

Analysis based on this information:


Coinbase is one of the most renowned cryptocurrency exchanges across the globe. It is used as a primary platform by thousands of cryptocurrency dealers to buy and sell digital currencies such as Bitcoin. However, reports started emerging late Tuesday, September 8th, indicating that customers were experiencing issues when transferring Bitcoin from Coin to Coinbase. The transactions were being blocked due to a technical error in the Coinbase system, which led to the Office of Foreign Assets Control (OFAC) of the US Treasury Department flagging the movements as a danger to national security.

Users took to Reddit and Twitter to express their frustrations after receiving notifications from OFAC, indicating that their Bitcoin transfers had been blocked. The notices specified that the transfers came from an OFAC-sanctioned address, which triggered the alarm bells for Coinbase. The reason for flagging the transactions was the use of the words OFAC, which is similar to a blacklist maintained by financial institutions to ensure they are not dealing with forbidden entities. OFAC sanctions are placed on entities that pose a risk to the US or its allies.

The mistaken blockage of Bitcoin transactions by Coinbase due to an error in the system could have dire consequences for its users. For instance, if the users were dealing with a company or individual on OFAC’s blacklist, their Bitcoin transactions would have been intercepted by the US Treasury. This would have prevented them from receiving goods or services that they had paid for and could potentially have caused financial losses to them.

This error showcases the importance of ensuring that technical systems for handling cryptocurrency transactions are robust and free from errors. Coinbase had to issue public apologies to its customers who were affected by the blockage of their Bitcoin transfers. It is essential for users to research and carefully choose their cryptocurrency exchange platforms to prevent future losses due to system failures.

In conclusion, Coinbase’s glitch that led to the blockage of Bitcoin transfers from Coin to Coinbase is an indication that even the most significant cryptocurrency exchanges can be fallible. It shows how important it is for exchanges to ensure they have robust systems to avoid technical errors that could potentially harm their customers. Keywords that summarize the article include Coinbase, Bitcoin, and Technical Problem.

This article and pictures are from the Internet and do not represent Fpips's position. If you infringe, please contact us to delete:https://www.fpips.com/5867/

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.

Like (0)
Previous 03/08/2023 03:35
Next 03/08/2023 03:47

Recommended articles