The Bitcoin exchange Coinbase has overcharged users thousands of dollars due to an error in its system, but will offer refunds.
Customers were charged multiple times for transactions, which Coinbase has explained as a result of a bug tied to how credit companies billed for the service. Having fixed the issue, the Bitcoin exchange has vowed to refund those affected.
Coinbase apologised for the error and said it was, “actively working with banks, processors and networks to improve the digital currency purchasing experience”.
The popular Bitcoin exchange has attributed the error to changes in the Merchant Category Code, which is used by Visa to identify debit and credit transactions. After banks issued warnings they would no longer permit customers to buy cryptocurrencies using credit cards, the changes kicked into effect.
Users took to Coinbase’s Reddit forum to voice their complaints, with one citing to a $67,000 charge and another being hit with $17,000.
“I made ALL of that money in crypto over the past 8 months. This is not good and I feel sick. I knew there is risk to lose money in this space, but not like this!! I may as well have burned it all. I hope Coinbase implodes!” raged Reddit user ipizi.
This will simply fuel worries echoed by banks and governments that cryptocurrency is posing a risk. Banks are largely concerned that consumers are investing in Bitcoin to pay off debts, and instead worsening their situation.
There are also concerns that the anonymous nature of cryptocurrency transactions is powering criminal behaviour such as money laundering and funding both the drugs sale and arms sale.
The Treasury will reportedly regulate Bitcoin and require traders in cryptocurrency to disclose their identities and report suspicious activity.