The developers of the crypto currency exchange Coinbase has corrected the error in the system a payment gateway where users have lost their funds in bitcoin. The problem arose about two weeks ago when the company announced the addition of Protocol support Segregated Witness (SegWit).
On March 12, the Coinbase user under the name Dazzling_Substance reported in Reddit about the issue with the payment gateway where he failed to send the BTC to the merchant. The user suggested that a bug was caused by a problem in the Bitcoin Payment Protocol (BIP70), which provides communication between merchants and customers.
Dazzling_Substance said that Coinbase may not have updated the Protocol BIP 70 that led to the loss of BTC that he was trying to send:
“If you are sending payment to the merchant through the payment gateway Coinbase.com he will not receive those bitcoins, and you will lose your coins due to a system problem (not Coinbase has updated BIP70 for use SegWit address, and your coins are sent to addresses that do not support SegWit, and therefore are not tracked in their system.”
The Coinbase team immediately commented to CoinTelegraph edition, indicating that the Protocol BIP70 was updated, but the problem arose from the fact that the requested address payment was incompatible with SegWit. The exchange said the problem affected less than 30 customers and was fixed immediately.
“Once we received notification about the problem, we started working on a solution, and it was removed within a few hours. This problem has affected at least 30 customers, and all of them received compensation,” – said in Coinbase.
The BIP 70 Protocol was submitted to bitcoin developers Gavin Andersena (Gavin Andresen) and Mike Hearn (Mike Hearn) in July 2013. This decision was intended to increase the security of bitcoin transactions by preventing MITM attacks (man-in-the-middle or “middle man”).