Coinbase Helps Recover Wrongly Sent ERC-20 Tokens

by Trendoinvest December 17, 2022 · Latest News

Coinbase has released a tool to recover ‘wrongly sent’ ERC-20 tokens

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Without ever revealing private keys, “our recovery tool can move unsupported cash directly from your arriving address to your self-custodial wallet.”

Users who “mistakenly transfer unsupported tokens” to exchange addresses have access to an asset recovery option provided by the prominent cryptocurrency platform Coinbase.

By supplying “the Ethereum TXID for the transaction where the asset was lost and the contract address of the lost asset,” customers who deposited any of the nearly 4,000 ERC-20 tokens to a Coinbase address may retrieve their previously unrecoverable payments, according to a Dec. 15 release from Coinbase. The exchange stated specific ETC-20 tokens like Wrapped Ether (wETH), TrueUSD (TUSD), and staked Ether (STETH) will be eligible for recovery, with a 5% penalty on transactions of more than $100.

According to Coinbase, “Our recovery tool can relocate unsupported funds directly from your incoming address to your self-custodial wallet without ever disclosing private keys.” “We achieved this by sending the cash straight from your inbound address without processing them through our centralized exchange infrastructure, utilizing patent-pending technology,” the company claims.

Coinbase Helps Recover Wrongly Sent ERC-20 Tokens

Many customers had experienced payments that were sent incorrectly since when the bitcoin business was almost entirely undeveloped. In a case from 2018, a Canadian court ruled that a user who purchased 530 Ether ETH $1,273 rather than the now-defunct Copytrack (CPY) tokens was forced to repay the extra tokens. An Australian judge made a similar finding in a case where Crypto.com inadvertently gave a customer $10.5 million rather than a $100 refund. Other significant exchanges appear to provide reimbursement for comparable transactions on an individual basis.

In its support pages, Binance stated that it “does not offer a token/coin recovery service” and that it may decide to help users “solely at its discretion.” The customer support staff of Crypto.com was instructed to be contacted, and users were cautioned that “money recovery may not be viable in some cases..”

More than 100 million people use Coinbase worldwide. CEO Brian Armstrong indicated in December that the exchange’s trading income for 2022 was estimated to be “about half” that of 2021. The platform also noted that demands for information pertaining to criminal investigations from law enforcement authorities had grown.

FAQs – Coinbase Recover ERC-20 Tokens

How to recover ERC20 tokens sent to Coinbase?

Can I retrieve ERC20 cryptos given to Coinbase that are not supported? There is no way to retrieve any digital assets that you may have sent to your Coinbase account that Coinbase does not now support.

Can you recover tokens sent to wrong address?

No, Loopring is unable to retrieve or compensate tokens that were transferred to the wrong address. Successful transactions on the Ethereum L1 or Loopring L2 blockchains cannot be undone.

Will Coinbase refund if scammed?

Does Coinbase compensate stolen money? Banks may not always be obligated to return stolen funds. If you haven't done anything to jeopardise the security on your end, they will nearly always do so.

What is Coinbase recovery?

A 12-word recovery phrase, also known as a seed phrase, is generated by Coinbase Wallet and is only accessible by you. This implies that you will be unable to access your Coinbase Wallet if you lose your recovery phrase.

Conclusion

Congratulations! Coinbase has released a great new tool to help users recover ERC-20 tokens that were sent to the wrong address. This is a great step forward for cryptocurrency users, as it can help reduce the number of funds that are accidentally lost due to incorrect transactions. We encourage all users to take advantage of this tool as soon as possible to ensure that their funds remain secure.

Disclaimer

Please bear in mind that the material in this article is not financial or investment advice. The information in this article is strictly the author’s opinion and should not be interpreted as trading or investment advice. We make no assurances about the completeness, trustworthiness, or accuracy of this content. The cryptocurrency market is notorious for its tremendous volatility and irregular moves. Before investing, any investor, trader, or the regular crypto user should perform comprehensive research and get familiar with any local regulations.