Cryptocurrency

Coinbase prevented worse and more damage

So novel and this promising, Bitcoin is as an Asset, so it is a pity, that Criminals always try to enrich themselves on the ignorance of the masses in this point. One of the most extreme examples of such a Crypto Scam of the Twitter Hack last week, is hacked, the Criminals are a variety of Twitter Accounts of high-profile public figures. This process took the Criminals to spread a Bitcoin Scam. The promise: the one who sends his Coins to a specific address, you should get back double the amount.

It must be a Scam, it is actually easy to recognize. Nevertheless, the Hacker cheated more than 100,000 USD from the Gullible. As is known now the well-known Crypto-exchange, Coinbase, has prevented worse in the process. At the same time, but also raises the question, how trustworthy is Central exchanges are not to destroy even the Use Case of Bitcoin.

Coinbase acted quickly and limited the damage

The extent of the Twitter Hacks is actually hard to imagine, considering how many of the Accounts are really very well-known personalities such as Elon Musk, Jeff Bezos or Barack Obama to attack the hackers at the same time. Alone, Elon Musk has 37 million Followers on Twitter that could have seen the Scam potentially.

At the same time, the Hacker cheated so according to the latest findings 121.000 USD in the Form of Bitcoin, which sent the victims of the Scams, in more than 400 individual transactions. Since some people have probably sent several transactions, it is assumed that less than 400 people fell for the Scam victim. Such a pity this is so small, this number appears to be measured in the millions or hundreds of millions of people who might have seen the Posts potentially. How do they fit together?

A part of the damage of the Twitter Hacks, and Scams to limit Coinbase has added. As is known now the well-known Crypto-exchange has the address of the Wallet of the Criminal a short time after the Posts for Coinbase User lock. The consequence of this was that users of Coinbase were not able to send your Bitcoin from the Exchange to the masterminds of the Scams.

As a result, the stock market kept the 1,100 users before that to send a total of 30.4 Bitcoin to the value of almost 285,000 USD to the address of the Wallet of the Scams. Unfortunately sent previously, still 14, users of Coinbase, a total of 3,000 USD to the address, before the Exchange could lock.

Coinbase destroyed so the Use Case of Bitcoin?

The 1,100 users were able to keep due to the rapid Action of Coinbase’s stock of Bitcoin will be in the stock market is likely to be very grateful. Nevertheless, the Act of Coinbase raises questions and criticism that could be for BTC, in theory, very dangerous.

Bitcoin was invented as a digital cash of Satoshi Nakamoto, it allows for a decentralised network without a means to send men transactions. This BTC is independent of States, banks or other Intermediaries and so it is not confiscated to the standard. Furthermore, transactions in the network are irreversible, so you can get back any payment as in the case of a Bank. These properties are Central for BTC and define its Use Case as digital cash or digital Gold.

The Intervention and censor of transactions through centralized Exchanges can of course be in individual cases, such as the Twitter Hack is very helpful, but it also shows once again that you can be his Bitcoin only really safe, if you managed it yourself. This is exactly why we point to in our articles again and again to the importance of a Cold Wallet is, if you have any currencies for your conditions, a large sum in BTC or other Crypto. You do so your self a Favor and safe your Coins with a casual. Simply click on the Button!

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The comments in this article do not represent any trading recommendations or investment advice.

About the author

Eve Manning

Eve Manning

A native Texan, Eve first started out as a Finance Analyst and later realized that her true passion was not in trading but in writing. She leverages her experience in the Finance industry to analyse and write in-depth news articles covering the Cryptocurrencies, Economy & Finance industries.

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