Coinbase Is Giving Out $100 Bitcoin Each To 'Some' Of Its Users: Here's Why

Cryptocurrency exchange Coinbase Global Inc. COIN said it is giving out $100 in Bitcoin BTC/USD to about 125,000 of its customers who were erroneously told that their security settings were changed.

What Happened: Coinbase mistakenly sent the email to the customers on Aug. 28, saying that their two-factor authentication (2FA) settings were changed. This resulted in widespread confusion and users panicked after they received the mail, fearing their accounts were being hacked.

See also: How To Buy Bitcoin (BTC)

Coinbase took to Twitter to apologize for the incident and said it worked as quickly as possible to fix the underlying issue.   

We’re laser focused on building trust and security into the crypto community so that the open financial system we all want is a reality. We recognize that issues like this can hurt that trust.

— Coinbase (@coinbase) August 28, 2021

The company also confirmed on Reddit that it is giving $100 worth of Bitcoin each to "a small number of users who were adversely affected by this incident." However, the confirmation evoked mixed reactions from the customers, with many saying they hadn't received the amount despite having suffered losses due to the error.

Why It Matters: Coinbase’s plan to give out $100 in Bitcoin to its customers comes just days after CNBC reported that thousands of Coinbase customers claimed their accounts were hacked and criticized the company for its poor customer service.

Coinbase had said in a blog post in July that it is expanding its customer support team and plans to roll out live chat and phone support for customers this year.

Coinbase, which went public in April, currently has about 68 million customers.

Price Action: Coinbase Global shares closed almost 1.4% higher in Monday’s trading at $262.66.

Read Next: Bitcoin, Ethereum, Dogecoin Take A Breather But Solana Can't Stop Chasing New All-Time Highs