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The problem is that it seems like the data that leaked is also the data that would be used to do account recovery. And what that means is that 1) If you lose
by thepasswordis 1y ago
The problem is that it seems like the data that leaked is also the data that would be used to do account recovery.
And what that means is that
1) If you lose access to your account (through either your own fault, or coinbases fault) that the process of recovering it may not be so straightforward anymore.
2) Hackers can try to “recover” accounts now using this leaked info.
This is a huge problem. What coinbase needs are IRL offices where you can go and do things like account recovery, and where people trying to steal money can be caught and prosecuted (and makes a huge barrier for the overseas thieves who are usually doing this)
The only solution here is: hardware 2 factor like yubikeys.
- piva00 1y ago> What coinbase needs are IRL offices where you can go and do things like account recovery, and where people trying to steal money can be caught and prosecuted (and makes a huge barrier for the overseas thieves who are usually doing this) That's just a bank.
- thepasswordis 1y agoCorrect. Coinbase is a bank that holds cryptocurrency.
- DonHopkins 1y agoAnd OpenSea is a zoo that holds apes.
- dowager_dan99 1y agoBeyond the regulatory-dodge and crypto marketing explain to me how Coinbase is NOT a bank
- Analemma_ 1y agoCryptocurrency firms exist in a quantum superposition of bank and not-a-bank until you interact with them, at which point they collapse into whichever state costs them less money.
- rmk 1y agolol. I couldn't help but chuckle when I read this comment :)
- chaosbolt 1y agolol they even do fractional reserve things like banks, except they're more shady and don't acknowledge it, now I'm either connecting dots that shouldn't be connected or some withdrawal locks that happened through some big arbitrage opportunities were very suspicious.
- singleshot_ 1y agoWell, right now they’re applying for a charter which suggests they don’t think they’re a bank, but I can think of some other reasons, too.
- anton-c 1y agoI mean this isn't the criteria you're looking for but I can trade assets within coinbase's website. It looks like a stock trading platform. I don't for the record. I don't think commodity, forex or stock trading is built into any bank interface but I don't have enough money to know for sure. So it's different in that way I guess.
- lovich 1y agoWatching crypto enthusiasts run into every problem that society already tackled with in the past when developing currency and its controls, and then coming up with solutions that look exactly the same as what dirty fiat currency uses, has been a source of much entertainment the past few years
- voidspark 1y agoThis is an exchange problem, not a crypto problem. You don’t need an exchange to hold crypto.
- lovich 1y agoYes, I think I’m familiar with the crypto enthusiasts defenses that all boil down to looking at a single aspect of their system in a vacuum and not realizing that if anyone wants to functionally use crypto as a currency and not as a speculative asset or tool in crime, then all these aspects actually have to work and work together
- voidspark 1y agoI don't really care about crypto personally (volatile shitcoins) but I think that's a straw man argument. They all know it gets troublesome when it comes to dealing with fiat transactions. The hardcore crypto enthusiasts want to avoid fiat entirely.
- sumeno 1y agoIf only hardcore crypto enthusiasts who didn't want any fiat had cryptocurrency bitcoin would be worth a couple dollars a piece and 99% of other cryptocurrencies wouldn't exist. The vast vast majority of people who have crypto are doing it because they think they can get rich from it and that's why anytime it's talked about it's talked about in terms of fiat values
- deleted 1y ago[deleted]
- SimianSci 1y agoThe Crypto industry continues their speedrun of rediscovering all of the reasons for why the global financial system exists. What you've described is the same thing that many Crypto enthusiasts call a "Bank"
- knowitnone 1y agoexcept banks staff can easily be bribed too. There is plenty of bank fraud happening.
- rib3ye 1y agoI can walk into a bank branch and show documents. I guess I can walk downtown to CB HQ, but something tells me I won't get past the front desk.
- suzzer99 1y agoIf my bank money gets stolen from me via fraud (unless I literally just Zelle the scammer), I get it back. That's the big difference.
- SoftTalker 1y agoZelle is ultimately a bank transfer. Yes they say to consider them like sending cash, but a bank transaction is at least tracable to a real account owner, who could then be pursued in the case of fraud, and it well might be reversible if push came to shove or if there is documented fraud.
- anton-c 1y agoI know it's the massive exception but I was reimbursed when the exchange that tried to rugpull its users felt legal pressure. Things have changed slightly over the years - don't get me wrong, scams are still rampant. It's been ages since I was in college and had an overdraft or some other bs bank related fee, but the bank manages to 'scam' you legally too. I'm just playing devils advocate and sharing an anecdote, I'm minimally involved in crypto anymore.
- 1y ago
- josu 1y ago> What coinbase needs are IRL offices where you can go and do things like account recovery, and where people trying to steal money can be caught and prosecuted Is this satire?
- ClumsyPilot 1y ago> The only solution here is: hardware 2 factor like yubikeys. And when that’s lost, what do you do? Aren’t you back to account recovery step?
- drexlspivey 1y agoThen you send your iris scan to sama
- lxgr 1y ago> What coinbase needs are IRL offices where you can go and do things like account recovery, and where people trying to steal money can be caught and prosecuted People getting locked out of their account (which can happen due to no fault of the user, e.g. by an overly nervous risk system) will be really happy to have to potentially travel to a different city to regain account access...
- thepasswordis 1y agoI would be very happy to do this. Fine, make it optional. I actually would love a version of cold storage that is: never release this money unless I personally travel to an office if NYC and authorize it.
- b112 1y agoJust buy sone gold bars, and bury them in your yard.
- thepasswordis 1y agoExtremely vulnerable to rubber hose attacks.
- deleted 1y ago[deleted]
- whoopdedo 1y agoIf you ever sent money to or from a wallet you control, I'd think a reliable recovery factor would be to use that key to sign a message that Coinbase can verify with the address in their records. Cryptocurrency after all is just another PKI.
- whoopdedo 1y agoAnd dumb-dumb me just realized how trivial that would be to break. Social engineer someone into sending/receiving money to/from your wallet then pretend to be them requesting an account recovery. Coinbase would have to make you sign a challenge ahead of time that would mark the wallet as the authorized public key for your account.
- scyclow 1y agoI'd imagine that anyone who's sophisticated enough to use a yubikey would just buy a hardware wallet and self custody.
- SoftTalker 1y agoThe the data that would be used to do account recovery is 99% either public record or already part of dozens of prior major data breaches.