Bitcoin and cryptocurrency prices are volatile, but the apps that allow customers to buy them aren’t supposed to be.
Some users of Coinbase, the most popular app for buying cryptocurrencies, found on Thursdays that their credit and debit cards were charged multiple times for some transactions. In a few cases, Coinbase users on Reddit reported that so much money had been drained from their bank accounts that they had been dinged with overdraft fees by their banks.
Coinbase, which claims more than 10 million users and to have processed more than $50 billion worth of transactions, said in an email to VICE News that the transaction errors stemmed from the credit and debit card companies, and that they will be reviewing all transactions to find and refund any affected customers, including for associated overdraft fees.
“This is related to the recent MCC code change by the card networks and card issuers charging additional fees. We have identified a solution and future purchases will not be affected,” Coinbase spokesperson Elliott Suthers said in the statement. “We will ensure any customer affected by this issue is fully refunded. We expect these refunds to happen for customers automatically through their bank.”
Though Coinbase is widely used by the crypto community, the app has buckled under the the millions of users that it has added over the last year, as cryptocurrencies prices started rising rapidly. At times, users have complained about slow withdrawals and security experts have pointed out a number of vulnerabilities in the app.
None of these issues, however, appear to have put a dent in Coinbase’s skyrocketing popularity or value. Last August, the company raised $75 million at a $1.6 billion valuation from a group of investors that includes Silicon Valley heavyweights like Spark Capital and Greylock Partners.
Cover art: In this photo illustration, the Coinbase cryptocurrency exchange application is seen on the screen of an iPhone on February 12, 2018 in Paris, France. (Photo by Chesnot/Getty Images)