Coinbase SegWit Improper Implementation, Leading To Bitcoin Loss

By Achal Arya
Published March 13, 2018 Updated March 13, 2018
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Coinbase SegWit Improper Implementation, Leading To Bitcoin Loss

By Achal Arya
Published March 13, 2018 Updated March 13, 2018

A Coinbase user has reported that Coinbase SegWit implementation is not done correctly that is resulting in the loss of bitcoins. However, there has been no confirmation or clarification on the matter yet.

Also, read… Coinbase Develops Crypto Index Fund With Bitcoin And 3 Other Cryptocurrencies

Coinbase user claims issues with SegWit

Last month, Coinbase announced that it has implemented the Segregated Witness (SegWit) to its bitcoin transactions. In its official blog, it stated:

“We’re excited to announce support for Bitcoin Segregated Witness (SegWit) transactions on Coinbase. Over the next week, we will be gradually enabling SegWit compatible Bitcoin sends and receives for all customers.”

In another of its updates, Coinbase explained that the SegWit support has been rolled out to 100 percent of its customers. It further asked its users to be cautious in sending their Bitcoin (BTC) to Bitcoin Wallet and Bitcoin Cash (BCH) to Bitcoin Cash wallet as “after SegWit, we will not be able to recover funds sent to incorrect wallets/addresses.”

However, it doesn’t seem to be the case as a user has claimed that the SegWit implementation of Coinbase is broken and one might lose his bitcoins while using them. He further explained that:

“If you send payment to a merchant using a coinbase.com gateway, they will not receive the bitcoin, and you will lose your coins due to an issue with their system (they have not updated the BIP70 to use SegWit addresses and your coins are sent to a non-segwit address and are subsequently lost in their tracking system).”

Coinbase gets attacked amidst new developments

Coinbase is certainly trying to be the master of all jacks by first announcing its cryptocurrency index fund and then the tax calculator tool. However, the San Francisco-based Cryptocurrency exchange has been involved in a number of complications.

Recently, Coinbase has been slammed with two lawsuits for insider trading and unfair business practices. It certainly raises the questions on the integrity of such a popular exchange. Though it’s yet to be known if the situation with its SegWit implementation is as it has been claimed to be or something else is the problem.

What are your views on this new issue involving Coinbase? Let us know your thoughts by commenting below!

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Achal Arya
527 Articles
I am an entrepreneur and a writer with a bachelors degree in Computer Science. I manage the blockchain technology and crypto coverages at Coingape. follow me on Twitter at @arya_achal or reach out to me at achal[at]coingape.com.

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