Coinbase Receives $1 Million Amid Crypto Hack, Yet Victims Await Compensation – What's Going On?

Crypto News
Crypto News

18 Sep 2023 6:00 PM

Coinbase, the largest US cryptocurrency exchange, has raked in $1 million in profit from the recent hack of DeFi platform Curve Finance....

  • Coinbase, the largest US cryptocurrency exchange, has made $1 million in profit from the recent hack of DeFi platform Curve Finance.
  • The hack resulted in the theft of $73 million worth of assets, with a trading bot recognizing an arbitrage opportunity and paying 570 ETH to ensure its trade was processed quickly.
  • Coinbase happened to be the validator that received the payment, and Alchemix, a platform that suffered losses during the hack, claims that Coinbase has refused to return the funds.
  • Alchemix believes Coinbase is effectively holding stolen money, while Coinbase maintains it is not legally obligated to reimburse anyone.
  • The hack exploited a bug in the code of certain liquidity pools, resulting in the loss of assets.
  • Following public pressure, the Curve exploiter returned stolen assets, and the trading bot operator returned its profit.

The sentiment of the article is negative, as it highlights the dispute between Coinbase and Alchemix over the funds obtained from the hack.

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You May Ask

How much profit did Coinbase make from the recent hack of Curve Finance?What was the total value of assets stolen during the hack?Why does Alchemix believe Coinbase should return the funds?What was the incentive for the validator to prioritize the trading bot's transaction?Did the Curve exploiter return all the stolen assets?

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