Coinbase Resolves Two-Factor Authentication Log Error Amid Hacking Fears

Coinbase, a leading cryptocurrency exchange, recently fixed a critical bug in its account activity logs that led users to believe their accounts had been compromised. The issue caused failed login attempts to be incorrectly recorded as two-factor authentication (2FA) failures, sparking widespread concern about security breaches. This misunderstanding arose when the system logged attempts with wrong credentials as '2-step verification failed', even though no attackers had reached the 2FA stage. As a result, many users took precautionary measures, such as resetting passwords and scanning for malware. The error has now been rectified, with Coinbase updating its system to accurately display such attempts as 'password failed'. This resolution underscores the importance of accurate logging in maintaining user trust and security in digital platforms. Despite speculation about potential social engineering, there is no evidence to suggest this error was exploited maliciously.