Coinbase had been storing over 3,000 clients data including the individual’s name, email address, and passwords.
However, according to a blog post, the logged information was not improperly accessed, misused, or compromised.
The exchange claims its registration form under "a very specific and rare error condition" had been failing to load correctly, which meant that any attempt to create a new Coinbase account under those conditions would fail.
"Unfortunately, it also meant that the individual’s name, email address, and proposed password (and state of residence, if in the US) would be sent to our internal logs," the exchange added.
For example, if the user reloaded the signup page and then re-submitted the form, their registration info would not be logged, and the password would be securely hashed.
However, in the 3,420 instances, the user successfully registered using a password with a hash that matched the one previously logged.
Earlier iHodl reported that Coinbase Custody became the world's largest custody in the crypto industry.
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