Coinbase Platform Saved By a White Hat Hacker’s Intervention

White Hat Hacker saves Coinbase from market-nuking by pointing out severe exploitable vulnerabilities on their advanced trading platform.

Bishal Kumar Chanda2 min read
Coinbase Platform Saved By a White Hat Hacker’s Intervention

Recently, a white hat hacker by the pseudonym Tree of Alpha came across major vulnerabilities in the US crypto exchange platform, Coinbase. But instead of exploiting the vulnerabilities himself, the good intentioned hacker contacted Coinbase CEO, Brian Armstrong, to prevent exploitation. Exploiting the vulnerability, bad actors could easily manipulate Coinbase’s order books with fake prices and earn a great payout. Thanks to Tree of Alpha, Coinbase fixed the vulnerability in no time and CEO Brian Armstrong thanked the hacker publicly.

Few hours after Tree of Alpha’s warning, Coinbase temporarily shut down all trading on their platform under the guise of “technical problems”. After the issue got resolved, the hacker himself confirmed it in his tweet and congratulated the Coinbase team. According to him, the vulnerabilities could have caused a great disaster not only for Coinbase, but also the entire crypto industry. Coinbase can count itself lucky that it took swift action on the hacker’s warnings and avoided a major catastrophe.

While it is not frequent, these types of interactions do occur in the crypto space. Like Tree of Alpha, many white hat hackers have helped crypto-based companies like Coinbase from facing major losses. For example, last year a hacker took over $600 million of crypto assets from the Poly Network, but he returned it after a week claiming it was just to teach them a lesson. Similarly, in August 2021, Paradigm’s security researcher (known as samczun on Twitter) fixed a $350 million flaw in the SushiSwap DEX platform.

Over the years, white hat hackers have played an important role in keeping the crypto space clean, open and trustworthy. With the growing popularity of such ethical hackers, major crypto firms like Kraken, EOS, Ethereum Foundation and Binance have started offering bug bounties on their platform. At Bitcompare, we strive to provide you with honest and detailed reviews on major DeFi and CeFi platforms. Make sure you check them out to make the most out of your crypto investments.

Also read: Coinbase Review: What You Need to Know Before Using it.

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