BREAKING NEWS – Coinbase might be insolvent
In breaking news today it is rumoured that Coinbase and related exchange GDAX might be insolvent. Users might be at risk and should proceed with care.
This is a breaking story and we will stay on it as the story develops.
Update in the Video below..
It has become apparent that GDAX have suffered major replay attacks in the early trading of the new hardfork (ETHF) clone. They did not properly secure themselves from the attack after advice presented by the Ethereum foundation was taken.
During this period it is unknown what actual amount of ETC was relayed but we have estimated it is much bigger than initially anticipated. This occurred over a number of days as GDAX where assured by the Ethereum foundation there would be no interest in the original and unbreakable genesis chain. They where even aware of the attack vector but left it unpatched. It is specualted this may have been an attempt to kill off their competing chain.
At the time of the attack the $ETC was trading between $0.26 USD and $0.58 cents. It is now trading successfully above $1.80 USD after failed attempts harm the chain.
For every dollar taken during the replay attack they are now in deficit over appx -540%.
Sadly, If $1 million USD in ETH was withdrawn at the time that will place GDAX in a loss of -%540 or over USD $6M at current prices.
If Ethereum classic continues to rise, this may spell disaster if they have not repurchased customer funds.
Full story on: – https://bitflikz.com/blogs/news/critical-security-update-from-bitflikz-gdax-coinbase-may-be-insolvent
http://bit-media.org/news/coinbase-insolvency-speculation/
Reddit and Twitter has also been buzzing this morning: – https://www.reddit.com/r/Bitcoin/comments/4ura14/is_coinbase_insolvent/