Coinbase Developing Tool to Recover Assets from Unsupported Blockchains
Summary:
Coinbase, a renowned cryptocurrency exchange, is planning to introduce a tool that allows the recovery of assets sent to its unsupported blockchains such as BNB Chain and Polygon. To retrieve these assets, users must provide transaction details. Coinbase's service will be free for assets worth up to $100, with a 5% commission charged on higher values. Since its launch, the platform's recovery tool has retrieved $160 million from the Ethereum blockchain. Although Coinbase aims to expand this feature, they cannot guarantee future eligibility for all assets due to technical complexities.
Coinbase, a prominent cryptocurrency exchange, is set to introduce a feature that enables the retrieval of misplaced assets transferred to its unsupported blockchains such as BNB Chain and Polygon. As per the announcement on February 27, to recover these assets, users who have sent their assets to Coinbase accounts on unsupported blockchains need to provide their transaction ID and the Coinbase receiving wallet address. Traditionally, the recovery of these was quite challenging as the necessary private keys to reverse transactions were inaccessible to the company's staff and support channels. Coinbase will not charge for the recovery service for assets valued below $100. Yet, for any asset recovery exceeding this value, a 5% commission will apply. Quite similar to individual users' wallets, cryptocurrency exchanges' wallets are typically established as multisig and come with automatic tech support for a broad spectrum of blockchains and assets, even ones not directly supported on their platform due to reasons like regulatory compliance. Meaning, in theory, wrongly dispatched assets can be recovered. However, achieving this usually requires considerable time, effort, and collaboration from top-ranking executives who oversee the exchange's multisig wallets. It was reported in 2022 by Cointelegraph that Binance, at that period, levied $500 per retrieval for incorrectly dispatched crypto assets. Since its launch, Coinbase's recovery mechanism has managed to salvage $160 million worth of misplaced digital assets from the Ethereum blockchain. Currently, roughly 3,000 ERC-20 tokens mistakenly dispatched to Coinbase via BNB Chain and 800 similarly sent via Polygon exist. In a statement, Coinbase noted, "We are continually investigating and broadening the reach of this feature to accommodate additional assets and networks." However, they warned that due to the technical challenges linked to recovering unsupported assets, it can't assure the eligibility of every asset in the future. In related news, a user of a crypto exchange recently disappeared after inadvertently receiving $650,000.
Published At
2/27/2024 11:17:05 PM
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