In the security breach of a digital wallet of Coinbase, a US cryptocurrency facilitator, 100+ digital wallet customers, and the Coinbase users lost around $21millions. The issues behind this security breach have been pointed at the Coinbase Wallet, which was impacted by the security loopholes.
source : thecoinrepublic.com
The security loopholes like the smart contracts breach method, the pig butchering scam method of diverting the user, the liquidity mining scam method, etc were used by the hackers to breach into the system of the coinbase.
Who is Coinbase?
Coinbase is the foremost technology company in cryptocurrency, formed in 2012, this cryptocurrency exchange platform has been the pioneer for all the global cryptocurrency hype. since April 2021, The company is a publicly listed company on the US stock exchange NASDAQ.
What is a currency wallet?
the wallet is considered the digital bank store for all the currencies like the fiat currency and the cryptocurrency of the customers. Customers can use these wallets to make digital transitions and for all the operations like buying and selling any desired service or products at the retail outlets.
Apart from currency storage, these digital wallets can be used to store digital money which is used for different options like cryptocurrency purchases and many more. Digital platforms like the coinbase are also a type of digital currency wallet facilitator for customers who want to invest and get better outcomes from the cryptocurrency.
What are smart contracts?
With the help of smart contracts in digital transactions, the transactions into cryptocurrency one computer program can automatically be executed. the transfer of the digital forms of assets between the buyer and the seller once both parties fill in certain conditions.
The smart contract is very much similar to the old and the traditional contract with the only difference being that these contracts execute automatically once the required conditions are fulfilled on both ends.
What are liquidity mining pool scams?
In these scams, a false information dashboard is visible to the users in their wallets alluring them to make more transactions in their wallets until some huge amount of transactions is done in the same wallets.
Once the user believes they have completed some of their fabricated purchase, they tend to continue the purchases. All transactions are under surveillance by the hackers and once the hackers can acquire huge amounts of money, then the digital wallet is compromised and all the currency is taken away by the hacker using some malicious hacking activities.