(Edit: screwed up title – it was litecoin sent to a bitcoin address, not the other way around)
Just listened to the story on the recent Blockdigest episode. The TL;DR is in the title.
It’s of course the mistake of the user to not being careful enough, but also negligence on part of Coinbase not to have any sort of warning or restrictions in place for sending bitcoin to a litecoin address (which seems like an easy and reasonable thing to implement).
But particularly negligent is to claim that the funds are not recoverable anymore, which is simply not true, and luckily, another Twitter user was able to help recover the funds successfully (worth around $2.5k). So the Coinbase support was simply either incompetent or just lazy or lying, which is all equally concerning, as such cases are likely not very rare with all the newbies coming into the space and Coinbase being one of the biggest fiat on-ramps into bitcoin.
Timestamp to the story (as told by @brian_trollz, the person helping with the recovery): https://youtu.be/cvbm0YlKV04?t=3211
Link to the original Twitter thread: https://twitter.com/djjindra/status/1073096138893385728
And the follow up by @brian_trollz: https://twitter.com/brian_trollz/status/1073241960528429056
In an action that will induce facepalms and sarcasm across the crypto space, the United States Treasury Department Office of Foreign Assets Control issued sanctions against 2 Bitcoin addresses, since they are held by Iranians who helped facilitate the SamSam Ransomware scheme. A day after the sanction was issued, 8 cents of Bitcoin was sent into one of the Iranian addresses [from 2 Bitcoin addresses that start with 1JEW and 1MoSSaD. ](https://www.blockchain.com/btc/tx/8596339ee13e80ac2d386f01eab7cbf655269e1d7ef2343f22ec418be3ceac8f)
For those that do not know, Mossad is the intelligence branch of Israel. Mossad is known for assassinating terrorists worldwide, and is one of the most-skilled spy agencies in the world, comparable with MI6. Mossad is undoubtedly fighting a shadow war in Iran right now, making this transaction quite hilarious.
Apparently the United States government did not get the memo that it is impossible to sanction Bitcoin addresses, and this is true for most cryptocurrencies as well. Due to Bitcoin’s decentralization and cryptographic security, a Bitcoin address can never be frozen or deleted. [At the other banned Bitcoin address](https://www.blockchain.com/btc/address/1AjZPMsnmpdK2Rv9KQNfMurTXinscVro9V), some brave Bitcoiners have been sending small amounts of Bitcoin throughout the morning to prove this point.
Further, it just takes the click of a button to generate a new Bitcoin address, so taking the time to issue a sanction against a Bitcoin address is a total waste of time for the government, and meaningless.
Created offchain rolling a la Etheroll! 200k gas used for 100 rolls (where TX is sent by a notary – user sends NO TX) – hence 2k gas PER ROLL! The paper in description of the video describes the security of the system!