A technical issue on the part of Coinbase prevented the transfer of bitcoins from Binance to the exchange.
Users on Reddit and Twitter reported late Tuesday that the Office of Foreign Assets Control (OFAC) notified them that they attempted to transfer bitcoin from Binance to Coinbase, but their transfer had been blocked. Because it comes from an “OFAC-approved address.”
A Coinbase spokesperson acknowledged that this was a technical issue that affected nearly 100 people and has since been fixed.
Coinbase sent an email to affected users, saying deposits will be credited to their accounts shortly.
OFAC maintains a long list of crypto wallets and protocols that are classified as “country-specific” and sanctioned, meaning U.S. entities are not allowed to interact with them.
It is conceivable that a data entry error could have caused the problem.
In August 2022, the Tornado Cash crypto mixer was added to the sanctions list. Tornado Cash has been used multiple times in an attempt to hide the destination of hacked cryptocurrencies, including North Korea.
Coinbase is currently supporting a lawsuit forcing the U.S. Treasury Department to reverse its decision on Tornado Cash.
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According to CoinDesk