Coinbase bug let Overstock users pay Bitcoin Specie, get refunds ter Bitcoin
It turns out that newcomer cryptocurrency enthusiasts are not the only ones fighting to tell Bitcoin chic from its fork, Bitcoin Metselspecie .
Online retailer Overstock.com, which has a broad selection of goods from furniture to luxury witnesses, suffered from a nasty technical flaw that permitted customers to pay with both Bitcoin and Bitcoin Metselspecie – despite the fact that the latter currency wasgoed valued at a significantly lower price.
The bug essentially made it possible to successfully pay the required amount of BTC te BCH, but without adjusting the price according to the value of the latter. This meant that you could get any voorwerp at a 70-plus-percent “discount.” At the time of writing, Bitcoin and Bitcoin Contant stand at $14,524 and $Two,675, respectively.
The worst part wasgoed that, merienda users had requested a refund, the retailer would proceed to pay them back te the llamativo Bitcoin value – a glitch that could have lightly incurred millions of losses.
The technical shortcoming wasgoed very first reported by KrebsOnSecurity, where the flaw has bot documented ter more detail. Reporter Brian Krebs notes he discovered the kwestie following a notice from a worried Overstock customer.
According to the postbode, all it took to pull off this “trick” wasgoed paying for your voorwerp of choice with BCH instead of BTC. Spil long spil the requested BTC toverfee wasgoed the same, the payment would go through spil successful.
“ Logging into Coinbase, I took the [B]itcoin address and pasted that into the “pay to:” field, and then told Coinbase to send 0.00475574 ter [B]itcoin [C]ash instead of [B]itcoin,” Krebs wrote. “The webpagina responded that the payment wasgoed accomplish. Within a few seconds I received an email from Overstock congratulating mij on my purchase and stating that the items would be shipped shortly.”
“ I had just made a $78 purchase by sending approximately USD $12 worth of [B]itcoin [C]ash,” Krebs continued.
Spil Krebs himself points out, any customer practically had the the capability to exploit this bug to make “ridiculous sums” of Bitcoin ter a very brief window of time.
“ Let’s say I purchased one of the more expensive items for sale on Overstock, such spil this $100,000, 3-carat platinum diamond stadionring . I then pay for it te Bitcoin metselspecie, using an amount omschrijving to approximately 1 bitcoin ($
15,000),” Krebs said. “Then I simply tejadillo my order, and Overstock/Coinbase sends mij almost $100,000 ter bitcoin, netting mij a neat $85,000 profit. Rinse, wash, repeat.”
For background, Overstock partnered with cryptocurrency exchange desk Coinbase back ter 2014 so the retailer could suggest its customers the option to pay te Bitcoin and other cryptocurrencies.
According to Overstock, the kwestie resulted from a faulty payment integration provided by Coinbase. Coinbase has since shifted the blame back to Overstock, telling that “ the merchant playmate improperly using the terugwedstrijd values ter our merchant integration API.”
The bug purportedly existed for “approximately three weeks,” according to a statement from Coinbase. Fortunately for Overstock, it has since bot immobile.
Published January Ten, &mdash, 16:28 UTC