The cbETH smart contract of Coinbase has a blacklist feature that can freeze customer funds

2022-09-14 14:31:41

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Chain Catcher news, Coinbase's cbETH smart contract shows that Coinbase Wrapped Stake ETH (cbETH) has a blacklist feature, which means that if Coinbase believes a wallet has violated the user agreement, they can blacklist the address, or if they believe an account has engaged in misconduct or legal requirements, they can freeze customer funds. This feature has drawn criticism from some in the crypto community.

Earlier in August, Coinbase CEO Brian Armstrong stated that if regulators required a review of Ethereum validators, they would shut down staking services or mount a legal challenge. On August 25, Coinbase announced the launch of Coinbase Wrapped Staked ETH (cbETH) on the Ethereum network, which is exclusively minted by Coinbase and represents the utility token of ETH staked through Coinbase (i.e., ETH2). (BeInCrypto)

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