Coinbase Hit by $300,000 Loss From Token Approval Mistake

Key Points

1. The issue was caused by a configuration change and only impacted Coinbase’s own funds, with no effect on customer balances.

2. Security researcher Deebeez identified the problem, noting that Coinbase’s wallet interacted with the 0x Project’s 'swapper' contract, making funds vulnerable.

3. An MEV bot exploited the swapper contract to move tokens from Coinbase’s fee receiver wallet into its own accounts on August 13.

4. Similar issues have occurred before, such as with Zora-related claims on the Base network.

5. The incident highlights ongoing vulnerabilities in token approval processes, despite no direct customer impact.