Coinbase users reported on Reddit and Twitter that their attempts to transfer bitcoin from Binance to Coinbase were blocked due to a technical issue on Coinbase’s side. The Office of Foreign Assets Control (OFAC) notice stated that the transfer was blocked because it was coming from an “OFAC sanctioned address”. Coinbase has yet to comment on the issue, but users are advised to contact Coinbase support if they are experiencing any issues.
Coinbase, a leading cryptocurrency exchange, recently experienced a technical issue that impacted fewer than 100 people. Coinbase has since fixed the issue and sent affected users an email saying their deposit will be credited to their account shortly. The U.S. Office of Foreign Assets Control (OFAC) maintains a list of crypto wallets and protocols that have been classified as “specifically designated nationals” and sanctioned, meaning U.S.-based entities are not allowed to interact with them. Coinbase is compliant with OFAC regulations and works to ensure that all transactions are in accordance with applicable laws.
Coinbase is challenging the U.S. Treasury’s decision to add the crypto mixer Tornado Cash to its sanction list in August 2022. Tornado Cash has been used to obscure the destinations of hacked crypto, including by North Korea. Coinbase is taking legal action to try and reverse the decision, believing it to be the result of a data entry error. The lawsuit seeks to protect the rights of crypto users and ensure that the Treasury’s decisions are based on accurate information.
