Several users reported BTC transfers from Binance to Coinbase being blocked on the grounds that their addresses were “sanctioned.”
On March 8, users who were trying to transfer BTC from Binance to Coinbase received a notice from the US Office of Foreign Assets Control (OFAC) that their address was on the “sanctioned list.” Therefore, the transaction will be blocked and the transferred amount will be confiscated.
Coinbase later admitted that this was a technical issue. There are about 100 innocent wallet addresses that are included in this list. The exchange has emailed affected users reassuring that their funds will soon be in their accounts.
The US exchange said that the “bug” has been patched and there are no losses.
OFAC’s sanction list also includes the Tornado Cash transaction mixer project, a tool that has repeatedly helped bad guys remove traces of money on-chain, especially the notorious North Korean hacker group.
On the other hand, Coinbase is backing a lawsuit against US Treasury Department sanctions targeting Tornado Cash last August.
Synthetic Kyptos
