Coinbase, the San Francisco based exchange had reported on March 21, that a technical problem affected the functionality of Ethereum balances. The malfunction was studied and the research group found that with the help of a smart contract, any individual could access unlimited Ethereum balance.
Due to the technical glitch, the Coinbase users could get access to as much Ethereum balance as they wanted. The technical team traced out this issue recently which could let the users access unlimited Ethereum balance. Smart contracts were used to make this happen. The report was made public on 21st of March, however, the problem existed since the December of 2017. Vicompany, a research firm was awarded with $10,000 after they found out about the glitch.
“The researchers noticed an issue with our ETH receiving code when receiving from a contract. This allowed sending of ETH to Coinbase to be credited even if the underlying contract execution failed”, said the Coinbase officials.
The problem was taken care of by looking after the Contract handling logic. No attempts at exploitation of the Coinbase balance was found and whatever losses happened were solely accidental.
Access to Unlimited Ethereum Balance
As per reports by Vicompany, any individual could have added the ether balance with the use of smart contracts. The company explained that the failure of one transaction would mean that all transactions would get reversed and anyone would access unlimited Ethereum balance. However, luckily Coinbase didn’t face such issues.
Previously, a number of other exchanges faced such issues that allowed the malfunction to give unlimited access. On February, 2018, Zaif, a Japanese exchange suffered a glitch which allowed the users to buy Bitcoins for 0 money.