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Coinbase Says Internal Error Caused Erroneous Security Notices

Coinbase over the weekend sent erroneous notifications to 125,000 customers, saying that their security settings had changed.
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Coinbase  (COIN) , the country’s largest cryptocurrency exchange, said Monday that an internal error caused erroneous notifications to 125,000 customers over the weekend.

The erroneous notifications said that customers security settings had changed. Wilmington, Del.-based Coinbase gave the internal error information to CNBC.

The company spent “most of the weekend working with customers to make sure we can address their questions,” Coinbase spokesperson Andrew Schmitt told CNBC.

“We believe the only way to build trust with our customers is to be transparent when we mess up.”

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It certainly appeared to take ownership of its mistake over the weekend.

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Coinbase tweeted the following on Saturday:

“Yesterday, from 1:45pm PST to 3:07pm PST, Coinbase sent roughly 125,000 customers erroneous notifications that their 2FA settings had changed.

“Our teams immediately recognized the problem and worked as quickly as possible to ensure these erroneous notifications were stopped and the underlying issue fixed.

“We’re laser focused on building trust and security into the crypto community so that the open financial system we all want is a reality. We recognize that issues like this can hurt that trust.

“We will continue to work to gain back the trust of every one of our customers who was impacted by those notifications.

Coinbase stock recently traded at $261.62, up 1%. The shares have fallen 20% from their first-day closing April 14 amid skepticism about cryptocurrencies.

Hedge fund heavyweight John Paulson predicted Monday that cryptocurrencies are headed way down -- to zero. He called them "a limited supply of nothing."