Social media is ablaze with users who have reportedly had funds “stolen” from Coinbase. Moments ago Coinbase released a statement clarifying the ordeal. According to their blog, this is a temporary issue that will be fully remedied. No funds will be permanently lost.

Furthermore, they offered assurance that “Coinbase will ensure that each affected customer will be refunded in full for any erroneous charge.

Reimbursement could take a number of days, but it should happen relatively quickly. If you believe you were impacted by the system error but the issue does not self-resolve, they urge you to open a support ticket at support.coinbase.com.

The Cause

Remember the announcement that credit card purchases would now incur additional ‘cash advance’ fees? At the time Coinbase issued a statement offering advance notice on the changing policy, being careful to point out that the banks were responsible for the fees. Coinbase was simply complying. Well, this is an extension of that problem. Card issuers changed the Merchant Category Code (MCC) corresponding to purchases of digital currencies, and this is the unfortunate fallout. Oops.

Anyone who made purchases between January 22nd 2018 and February 11th 2018 could be affected. During that period, purchases that were made were not compliant with the new policy (it’s not your fault!). As a result, they are being refunded and subsequently reprocessed. Although the new charges take effect almost immediately, there could be a delay of several days before the refund lands in your account. The illusion, as a result, is that funds have been “stolen.”

Thanks, Coinbase

Although this is not the first Coinbase debacle (and probably not the last), understand that they are not primarily to blame. They are working tirelessly to fix the issue and restore what rightfully belongs to its customers. Have some faith and a little patience, and hopefully they will be gracious enough to compensate users who are hit with penalties or overdrafts as a result of the glitch.

 

 
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