Coinbase Bleeds $300K in Costly 0x Swapper Contract Blunder

Another day, another crypto giant stumbles over smart contract spaghetti.

Coinbase just joined the hall of shame with a $300K oopsie—proving even the 'regulated' players can't outrun DeFi's wild west. The culprit? A misconfigured 0x protocol integration that turned into a six-figure leak.

Who needs hackers when exchanges sabotage themselves?

Meanwhile, Wall Street still charges $25 trade fees for 'security.' Priorities.

What is the 0x Protocol?

Launched in 2016, the 0x Protocol is an open-source, Ethereum-based infrastructure that enables peer-to-peer digital asset trading. It’s an open-source collection of publicly audited smart contracts that can be utilized to create trading applications by developers. The protocol is very flexible and is utilized by many platforms to pool liquidity and enable token swapping.

In the Coinbase case, the MEV bots were successful in draining the funds due to the exchange’s improper setup of approval that enabled bots to invoke the swapper contract and carry out unauthorized transfers of the approved tokens.

Also Read: Coinbase, Squads Protocol Push USDC Growth on Solana