The Coinbase wallet and exchange service has fixed a bug in the payment gateway system which caused users to lose their funds from Bitcoin transactions via the platform. The issue emerged two weeks after the cryptocurrency exchange announced the launch of Segregated Witness (SegWit) support for its transactions.
In their Reddit post on March 12, Coinbase user Dazzling_Substance shared a problem with the platform’s payment gateway when it failed to send Bitcoin to a merchant. The user suggested that the bug was caused by a problem in the Bitcoin Payment Protocol (BIP70) that provides communication between merchants and customers.
Dazzling_Substance suggested that Coinbase might have missed the update of the BIP70 protocol, subsequently causing the loss of coins he attempted to send.
The Coinbase team promptly commented stating that the BIP70 payment protocol update has been implemented, but the problem emerged because the payment address requested was not SegWit-compatible. A Coinbase spokesperson stated that the issue has affected less than 30 customers and has been immediately fixed.