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This website glitch opened crypto fraud possibilities for a short period of time

11.01.2018   |  in Technology   |  in Technology   |   239
This website glitch opened crypto fraud possibilities for a short period of time

Reports coming from technology websites suggest that Overstock and Coinbase have had a glitch which mixed up two cryptocurrencies - Bitcoin and Bitcoin Cash. This means if one wanted to buy anything on Overstock for, say, 5 Bitcoins, this person could have sent 5 Bitcoin Cash instead and the system would fully approve this fraud. As most market observers know, Bitcoin Cash costs much cheaper than Bitcoin - only 2000 dollars per coin instead of current $14,000 per one bitcoin.

This bug has been removed shortly after it was detected, but those who found it note that one could have bought a very expensive ring on this platform for a much lesser price, and then request refund of 100,000 dollars in BTC, efficiently fooling the system. However, this massive financial security breach was fixed almost certainly before anyone figured this out.

This reminds of how some news messages concerning that old Mt Gox collapse told that the malefactors invented a way to produce fake bitcoins. In this case, coins remain coins and no “fake cryptocurrency” has been created, it’s the blindness of the payment system on Overstock that made it happen.

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