Coinbase Under Fire for Profiting From Curve Finance Hack

Coinbase Under Fire for Profiting From Curve Finance Hack – And Keeping Its Dubious Gain

Updated: 18 September 2023

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A smart Coinbase bot helped the crypto exchange gain $1 million from the $73 million hack against Curve Finance in July, but now it’s facing criticism for not returning any of the money to help the victims.

That’s according to a Coin Desk report, which says that when the hack threw Curve’s asset-pricing system out of whack, the Coinbase trading bot pounced. It paid 570 ETH to take advantage of an arbitrage opportunity that helped it snare a $1 million profit for the exchange.

While Coinbase is not under any legal obligation to return the funds, Alchemix requested that it send back money to the victims of the hack, Coin Desk reported.

”Coinbase has shown no willingness to return the funds despite knowingly benefitting directly from the exploit,” said Alchemix, which lost $22 million to the attack.

We are so thankful to a whitehat MEV bot operator who returned 43.3 ETH made from arb profits following the @CurveFinance exploit of the $alETH / $ETH pool.

This will be added to funds for redistribution.

Return Txhttps://t.co/UgQ5ag71y8 https://t.co/8TIbR3BRSZ pic.twitter.com/BCop05EWjN

— Alchemix (@AlchemixFi) September 4, 2023

Coinbase Has Nothing To Say

Alchemix believes Coinbase is keeping stolen money and says the exchange’s representatives told it it has no legal obligation to return it, the story said

A Coinbase spokesperson told Coin Desk that it has “nothing additional to share at this time,” it reported.

Most of the stolen $73 million had been recouped by early August. But the incident underlines how tricky things can be in the wild west world of crypto, and how the lack of legal clarity and investor protection may enable Coinbase to keep some dubious gains.

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