Coinbase Denies Allegations of Selling Customer Data
Cryptocurrency exchange Coinbase has denied selling sensitive user data to the US government.
The day before, the media spread the news that Coinbase is transferring the geolocation and transaction histories of customers to Immigration and Customs Enforcement (ICE) of the US Department of Homeland Security. Platform Users declared on Twitter that “didn’t follow this.”
In August 2021, Coinbase sold the analytics software license to ICE for $29,000. A month later, the exchange entered into a $1.36 million software transfer deal with the agency.
According to the research group Tech Inquiry, US authorities have gained access to various features of the Coinbase Tracer user data tracking tool, formerly known as Coinbase Analytics.
According to representatives of the platform, they only transfer information to the authorities for the investigation of financial crimes.
“Coinbase Tracer tools are built in accordance with government requirements and are used to investigate crimes related to terrorist financing and money laundering. The information shared comes only from publicly available sources and not from Coinbase user data,” the company said in a statement.
The exchange emphasized that ensuring the safe and secure operation of the platform’s customers is its top priority.
Recall that in 2020 Coinbase products became interested DEA and IRS. They planned to use Coinbase Analytics software, formerly known as Neutrino.
The exchange acquired Neutrino in 2019 and has been criticized. The founders of an Italian startup were involved in the Hacking Team project, which sold spyware to dictatorial regimes.
