Coinbase Rolls Out Asset Recovery Tool For ERC-20 Tokens

U.S.-based cryptocurrency exchange Coinbase has rolled out an asset recovery tool to enable users to recover almost 4,000 unsupported ERC-20 tokens that are mistakenly to their Coinbase address. The company said all eligible customers will have access to the asset recovery tool over the next few weeks.

The self-service tool makes asset recovery a simple step-by-step process while protecting the private keys for customer deposit addresses.

These mistakenly sent unsupported ERC-20 tokens do not get registered on the Coinbase ledger as they are not supported by Coinbase. These assets are generally lost and are unrecoverable until now as Coinbase employees and support channels do not have access to the private keys needed to reverse these transactions.

The new tool has made it easier to manage and recover these unsupported assets with just a few clicks. The customer just needs to have the Ethereum TXID for the transaction where the asset was lost and the Coinbase address where the asset was lost.

The assets can be recovered and send them to the users’ Coinbase Wallet, or any self-custodial wallet after proving ownership over it. The tool will move unsupported assets directly from users inbound address to their self-custodial wallet without exposing private keys at any point.

The recovery is done using patent pending technology to send the funds directly from the users inbound address without processing the funds through Coinbase’s centralized exchange infrastructure.

Coinbase said the tool support the recovery of select ERC-20 tokens on the Ethereum base layer, such as wETH, TUSD and STETH. All ERC-20 tokens on Ethereum are not eligible for recovery, and the eligibility of any given token is subject to change, it added.

Coinbase warns that customers will need to do their own due diligence to determine the authenticity, safety, and security of the assets they choose to recover as the asset has not gone through Coinbase’s rigorous asset listing review process.

Coinbase said it will not charge a recovery fee for recoveries estimated to be worth under $100. However, it will charge a small recovery fee of 5 percent to cover development and maintenance costs for the service for recoveries estimated to be worth over $100.

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