On March 21, Coinbase which is a San Francisco based cryptocurrency exchange revealed that there was an Ethereum glitch. This glitch allowed users to change their cryptocurrency account balances. This was noted by the researchers, by the use of the smart contract, an individual could manipulate his/her balance and ad as much Ethereum they required.
Unlimited Ethereum balances were a result of Smart contract manipulation on Coinbase
A few days ago, researchers found out that there was a vulnerability in Coinbase. This allowed users and investors to add to their accounts as much Ether as they wanted through the smart contract. Even though this bug was identified and revealed on March 21, the issue was there from December 2017. Therefore, the Dutch research analysts Vicompany who discovered the glitch were rewarded by Coinbase a total of $10,000.
“The researchers noticed an issue with our ETH receiving code when receiving a contract. This allowed sending of ETH to Coinbase to be credited even if the underlying contract execution failed; the issue was fixed by changing the contract handling logic — Analysis of the issue indicated an only accidental loss for Coinbase and no exploitation attempts.”
Coinbase was not the only exchange with unlimited coin glitch
In accordance to Vicompany, a malicious actor could be involved in the manipulation of ether balanced by the use of the smart contract in the distribution of ether in different wallets. Therefore, the organization explained that failure of one internal transaction would lead to a reversal. However, if this happened in the Coinbase interface, there was no reversal.
The third party researcher stated;
“On Coinbase these transactions will not be reversed, meaning someone could add as much ether to their balance as they want.”
According to the organization, Coinbase is not the only organization which has been suffering from the glitches which allow individuals to change their account balances. On February, Zaif which is a Japanese exchange suffered a bug. This allowed users to make purchases of BTC with zero dollars. Earlier, Overstock Company had the API glitch. This allowed various users make payments with BCH for the products which were priced in BTC.