The largest American crypto exchange, Coinbase, has found itself at the center of a scandal. The cause was a blatant incident: an integrated AI algorithm in the platform's official app generated and sent a push notification to millions of users with the result of a World Cup football match that had not yet been played.
According to the "urgent" alert, the Norwegian national team supposedly defeated Brazil 3:2, with two goals attributed to striker Erling Haaland. The problem is that the game was postponed due to weather conditions at MetLife Stadium in New Jersey, and at the time the notification was sent, the match had not even started.
Reputational Blow and Management Response
Social media users reacted instantly, spreading screenshots of the scandalous message. The crypto community and sports fans accused the exchange of irresponsibly disseminating unverified information, which creates serious risks for financial markets, especially against the backdrop of the developing prediction markets.
Coinbase CEO Brian Armstrong responded promptly, acknowledging the error. In his first public comment, he wrote: "Looking into it with the team — thanks for the heads up." However, this incident deals a serious blow to the image of the top manager, who had previously actively promoted prediction markets as an "ideal tool for finding truth." He claimed that real money bets force participants to verify information more thoroughly than journalists. The irony of the situation is obvious: the actions of Coinbase's own AI completely refute these lofty claims.
Systemic Problem or Coincidence?
This is not the first time Coinbase has faced criticism over the operation of its algorithms. Earlier in 2025, Armstrong had already explained intrusive betting notifications as a "bug in the push notification targeting system." Moreover, the company is actively reducing its staff of programmers who refuse to use neural networks for writing code, and aims to increase the share of AI-generated code to 50%.
Expert opinion: This incident is a wake-up call for the entire industry. Blind faith in AI without proper oversight and human verification can lead to catastrophic consequences, especially in the financial sector. Coinbase, striving to become "the most trusted brand in digital assets," clearly demonstrates how automation without responsibility undermines user trust. Prediction markets need impeccable data accuracy, not neural network "hallucinations."