The cryptocurrency platform, Coinbase, is under fire after they reportedly received a $1 million profit off of a recent hack. The hack in question occurred earlier this year when a hacker was able to exploit vulnerabilities in the decentralized finance platform Curve Finance. Some victims of the theft are still awaiting compensation, but the country’s largest crypto exchange has no plans to return the stolen funds.
The national securities and cryptocurrency law firm, Levin Law, P.A. (“Levin Law”), is investigating claims related to the Curve Finance hack. Investors who suffered losses may be able to pursue legal action. If you or a loved one lost money in the recent crypto hack, contact our office at (305) 402-9050 to schedule a free case evaluation or email founder and managing attorney Brian Levin directly at email@example.com.
The Curve Finance hack occurred on July 30, 2023, when bad actors reportedly exploited vulnerabilities in the platform’s Vyper compiler. Shortly after the hack, Vyper acknowledged that multiple versions were vulnerable to “malfunctioning reentrancy locks.” Hackers took advantage of these malfunctions resulting in over $73 million worth of losses.
Within two weeks of the theft, Curve Finance announced that 70% of the funds had been recovered. Unfortunately, some investors and other platforms, such as Alchemix, were left without a full recovery.
Coinbase reportedly profited off of the Curve Finance hack when a trading bot recognized the disruption in the platform’s pricing system and paid over $1 million to make sure “its trade was processed quickly by an Ethereum blockchain validator.” In this case, the validator was Coinbase. Coinbase allegedly received the $1 million because of the hack, therefore directly benefiting from the bad actor’s exploitation of a vulnerability in Curve’s system.
Alchemix and others have called for Coinbase to return the gains since they were received off of a theft, but Coinbase has refused. According to Coinbase, it is not required to return the money. Curve Finance, on the other hand, along with others, returned gains related to the hack.
This is not the first time that Coinbase has come under scrutiny. In June 2023, the U.S. Securities and Exchange Commission charged Coinbase for operating as an unregistered securities exchange, broker, and clearing agency. The federal agency alleged that Coinbase had made billions of dollars unlawfully by facilitating the buying and selling of cryptocurrency without being registered.
If you have lost money related to a cryptocurrency hack, contact Levin Law to schedule a free case evaluation. Harmed investors are encouraged to call (305) 402-9050 or email Levin Law founder Brian Levin at firstname.lastname@example.org. Attorney Levin can help determine the best course of legal action if you sustained cryptocurrency losses.
Most cases are handled on a contingency fee basis, meaning that clients are not obligated to pay Levin Law attorney fees unless money is recovered on their behalf.
Levin Law is a premier national cryptocurrency, securities, commodities, futures, and class action law firm. Brian Levin, Levin Law’s founding attorney, has helped recover in excess of $150,000,000 through arbitration and litigation for individual and institutional investors throughout the country and the rest of the world. Levin Law represents retirees, individual investors, high-net-worth investors, ultra-high-net-worth investors, institutions, family offices, trusts, publicly held companies, and others.