Bitcoin Forum

Coinbase has announced that they won't be supporting ETC. That's all well and good. Except that customers have sent them ETC, both intentionally and unintentionally (due to replay attacks). Despite clearly controlling the private keys to customer ETH addresses (therefore also ETC addresses), they are refusing to honor those deposits and pocketing the money!

See:

https://i.imgur.com/lJtgFCu.jpg
https://i.imgur.com/byeQ4vh.jpg
https://i.imgur.com/lSuchDQ.jpg

https://i.imgur.com/YC7pjcu.jpg
https://i.imgur.com/OHa7gDZ.jpg
https://i.imgur.com/lC2skPu.jpg
https://i.imgur.com/jsIkfbI.jpg

Coinbase is already a black eye on Bitcoin -- from baselessly closing accounts and blacklisting coins and double ACH debiting customer bank accounts, to backing the Bitcoin Classic fork and pumping Ethereum, and now stealing customer funds.

Boycott Coinbase!

Now this sounds scary. I shifted from Xapo to Coinbase and now Coinbase taking away user's funds makes them look so shady. Do they do it to BTC users as well where they can just keep all our bitcoins and refuse to return the same? I thought they were only freezing accounts dealing with gambling or other illegal websites.

They are probably the 1st popular bitcoin exchange platform, and that is showing by their brazen behavior.
People are complaining about their frozen funds, suspended accounts, aggressive monitoring policy of every transaction.
But this is new level of being a dick and I hope "Coinbane" will learn that sooner that later.

They are maybe waiting weeks with allowing ETC withdrawals because they have to buy them back and waiting for lower prices.

Probably they got emtied and got rekt.

https://twitter.com/desantis/status/758104013766266881

RED FLAGS.

Don't hold coins at coinbase. Remember Gox and Cryptsy.

I've heard so many horible things about coinbase and I'm just a month into bitcoin. The hold funds for no reason, they close accounts, they do solve the problems of the users. Mostly I've heard that once you get your funds in there, you can never get them back.

Yes, it's very obvious that they got replay attacked if you look at the course of events. Customers were withdrawing ETH and were receiving both ETC and ETH.

I wouldn't assume this makes them insolvent. They were/are insolvent regarding ETC liabilities, but I believe they are pretty well capitalized -- too well to be taken down by this. Nevertheless, it shows their incredible sloppiness and puts into question their capabilities to act as custodians for customer funds.

The replay attack is true event. I sent ETC to Poloniex using the old non fork chain, but the Poloniex received both my ETH and ETC.

Why going from a really bad wallet like Xapo to a worse wallet like Coinbase. I don't know about Xapo but in Coinbase you don't hold your private keys and as long as you don't hold your private keys you don't hold any bitcoin. Multibit or Multibit HD is a solution to this problem but if you are keen on continuing to use web wallets at least use blockchain.info, they don't freeze accounts and you hold your private keys there which means you own your bitcoins.

The ETH Foundation / Slock.it pushed a hard fork to bail out the DAO. Only a small minority of miners voted, but the mining pools still enforced the fork, as well as all major user clients and exchanges. So the fork was highly contentious. Miners continued to mine on the original blockchain, thus we have two surviving chains.

Ethereum Classic is the original blockchain/network. It doesn't recognize the DAO bailout fork as valid.

This is very surprising. They are a fairly well established company and have been around for a few years now. I hope they aren't going down hill because I have used them many times in the past. Luckily I only have a few cents worth of bitcoin in my account with them right now.

You can't boycott them, they have the support of the US government!

Wow that's super shady...
I've been using Coinbase to buy a little bit of BTC because it was so easy and the fees were low.
But idk how I feel about supporting a company that does something like this.

I know the ETH fork is causing issues for everyone, but its a on the company to take the loss if something happens, not pass the loss onto your customers.
That is the price of doing business. The image of your brand in the long run should be worth more than the few dollars you would lose IMO.

Boycotting is not enought, ETC has value so I see lawsuit possible. If they dumped the ETC at any exchange they have to buy back and return, if they did nothing then they have the private keys so just a bit work for them.

By the way ETC is the original, so it looks like scam attempt from Coinbase to give you some forked and potentially worthless coin instead. Dunno why everybody renamed original coin to ETC, and the fork to ETH.

Well i agree about that coinbase is not a good wallet anymore because i experience of problem 2 times.. in their wallet that why convert to other wallet also their exchange buy and sell bitcoin is not supported in my country.. Also halving issue too when i was addicted in gambling try to send my balance from gambling site and receive in their wallet but always receive pending process from gambling this is te worst wallet that i experience thats why i convert into electrum..
Well if you can boycott them,! ill support you..

This is another good example of why users have to care about its private keys (if you don't have the private key, you don't have the coins), storing your coins on exchanges isn't a good solution, on a fork it depends on its decision.

You basically say the exchange can give you the worthless coin, and keep the valuable one, no questions asked. Maybe exchanges could initiate the forks with some hash rate themselves, and decide what is best for them. Fortunatelly its called stealing, and you definitively have case for a lawsuit.

I've never used a centralized exchange before. I still don't understand why people leave funds in them! at the least, purchase sub -$150.00 of BTC at a time and dump them into a cold wallet or even in blockchain.info. There's no need to leave your funds in an exchange because they have a fancy web design.

Well, coin base more and more become a worst site, but I sure it's will never happen with coin base and important they're having a partnerships with PayPal. but where from you can know if the freezing account is dealing with gambling or other illegal websites?

This is pretty messed up. Charlie Lee was in the Slack detailing Coinbase's position. They are indeed refusing to honor deposits to keys which they control.

A couple points to note:

1) Coinbase made a conscious decision not to protect customer ETC.
2) The ETH Foundation told Coinbase to ignore the prospect of replay attacks.
3) Coinbase did nothing to prevent replay attacks.
4) "We were under no obligation to care about anything else sent to our ETH addresses."
5) "We have not closed the loophole. We may or may not."

https://twitter.com/desantis/status/758442180683960320
https://twitter.com/desantis/status/758443264676618240

How can you not trust Coinbase? They're in murrica an fully comply with the lawz. The murrican govt will get ur banking info from them faster than they could get it from Wells Fargo. What's not to love?

I refuse to use the services of the ones who were behind the Gavin fork. I think Coinbase's CEO was one of them who was pushing for XT. That move was driven by self interests, their hidden agenda and a total lack of concern for the bitcoin community.

I'm simply embarrassed for these guys. People are still replay attacking them. I guess Charlie was serious -- they seem to have no intention to fix the exploit by separating their ETH and ETC into unique addresses. WTF is wrong with them?

Still working as of a few minutes ago:
https://twitter.com/desantis/status/758563178854875136

This is basic stuff. None of the other exchanges fell prey to this AFAIK. Embarrassing.

Why am I feeling that the past is about to redo itself again? I meant the Gox and Cryptsy.
I never use coinbase even though their popularity is at the peak among online wallets and exchange platforms. Still, I am having some faith on coinbase by remembering their contribution to the growth of bitcoin ecosystem. Let's hope of good things only to happen.

They're murricans for christs sake!

If you guys don't stop badmouthing Coinbase Barack Hussein Obama will shoot drones at ur house.

Oh yeah, I forgot. We only kill men, women and children we don't care about. Which is everyone on the planet except murricans. lol

The stuff your talking about is self interest. Of course murrica protects her own interests. It would be stupid for a superpower not to do it. We spend enough overseas protecting oil interests alone to make every homeless person in America a millionaire, provide all Americans with healthcare and provide real humanitarian aid to countries in need (not just token aid).

If we pulled out of the places where our meddling is unwanted (like South Korea, the P.I., the Middle East) we might not have terrorists trying to blow up anyone that supports us. America created a lot of the problems she now faces by becoming the biggest bully on the block decades ago. Eventually the other kids are going to stick up for themselves.


http://tapnewswire.com/wp-content/uploads/2016/05/Us-Military-Spending-1-1.jpg

From reading all this it doesn't seem they know what the hell they are doing or how to run a proper exchange. WTF is all this?! :o

Most Africans now prefer Chinese investment to American 'aid'.  At least the deala are simple with tbe Chinese, aid from America always comes with many strings attached.

As for the rest it's just propaganda.

Clearly they don't. They were very brazen about their approach to ETH's hard fork, and Brian/Fred are incredibly brazen about their approach towards a hard fork in BTC.

Don't have a screenshot, but Charlie Lee did state in the Core slack that they had only 4 days to prepare for this fork, ETH devs told them to ignore the ETC fork, and they made a bad decision not to protect the ETC. At least they are accepting some blame.

But now will they still steal everyone's ETC that was sent to them post-fork?

This is why the Blocknet will be huge. Nobody will have to reply on exchanges anymore. https://bitcointalk.org/index.php?topic=829576.6140

Coinbase is famous exchanger platform, but in the other hand we see many negative feedbacks about them wherever, so i think it is always better to avoid using the exchangers wallets and store your coins in your owned downloaded wallet

Yeah, Blocknet is the future. It will put all these crooked exchanges out of business and truly remove government oversight from our money.

 8)