CJ - Bitcoin Specialist – 12-07-2022
A white hat hacker received the greatest bug bounty ever offered by Coinbase. However, the sum paid has sparked disagreement among cryptocurrency investment enthusiasts, with some claiming that it was too little considering the potential damage caused by the flaw.
Tree of Alpha, a white-hat hacker on Twitter, revealed how they discovered the flaw on the Coinbase exchange. An attacker might use this flaw to sell Bitcoin and other cryptocurrencies on Coinbase without really possessing any. This may be accomplished simply altering the product id. By exploiting this flaw, Tree of Alpha was able to execute deals.
The white-hat hacker made an effort to exchange 50 BTC for just 50 SHIB by performing a coin swap. The order was successfully filled. The attacker was able to buy about $2 million worth of Bitcoin for less than 2 cents worth of Shiba Inu.
"For my final test before reporting this, I did the following: -send 9M SHIB to my Coinbase account – change source account id to my SHIB account on Coinbase – post a 50 BTC limit sell order using 50 SHIB – ask individuals around me whether they are seeing it as well," he explained.
The white hat revealed his discoveries on Twitter and requested that Coinbase contact him. Coinbase was able to avoid a catastrophe that may have crippled the cryptocurrency exchange platform thanks to its rapid response. The bug bounty has angered the crypto community.
The white-hat hacker received a $250,000 bounty from the trade. The bounty sum instantly stirred debate in the crypto world, with many claiming that Coinbase was being cheap by awarding such a payout to someone who had assisted the exchange in avoiding its greatest vulnerability to date.
One user even hoped that after studying the problem, the hacker retained part of the large Bitcoin purchase. "I hope he took a LITTLE simply as extra compensation because $250K is fuck all to a company like Coinbase," the commenter commented.
Many people were surprised to learn that the highest bug bounty ever awarded by Coinbase was $250,000. Given the exchange's enormous value since going public last year. Besides that, decentralized exchanges (DEXs) with significantly lower trade volumes award prizes in the millions of dollars.