- Some user accounts have been suspended while trying to transfer BTC to Binance
- Nearly 100 people were injured in the crash.
- The exchange undertakes to return all blocked funds in the near future
Last night, March 7, several Reddit users reported that they were unable to transfer BTC from Coinbase to Binance. When trying to make a transaction, the user was getting notice that one of the addresses is “under OFAC sanctions.”
Moreover, the accounts of the exchange’s clients who encountered this problem were frozen. On the morning of March 8, Coinbase commented on the situation, citing technical issues.
The details of what happened are unknown. But at the same time, Coinbase reported that the vulnerability was fixed. About 100 people were affected by the bug. All users from this list will be returned the blocked funds in the near future.
Coinbase also noted that they will make every effort to ensure that this does not happen again in the future. Apparently, the victims’ accounts were accidentally flagged as suspicious.
The situation is rather strange. Both Binance and Coinbase are on the pencil of the federal authorities. In the first case, this is due to BUSD, in the second, to staking programs.
Note that OFAC is a division of the US Department of the Treasury that is responsible for sanctions against counterparties and individuals. Last year, the Tornado Cash cryptocurrency mixer was blacklisted by the department.