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Coinbase denied allegations of selling customer data


Aug 22, 2022

Coinbase denied allegations of selling customer data

Cryptocurrency exchange Coinbase denied selling confidential user data to the U.S. government.

The day before, the media spread the news that Coinbase was handing over the geolocation and transaction histories of customers to the Immigration and Customs Enforcement (ICE) of the U.S. Department of Homeland Security. Users of the platform said on Twitter that they “did not sign up for this.”.

In August 2021, Coinbase sold its analytics software license to ICE for $29,000. A month later, the exchange struck a $1.36 million deal with the agency to transfer the software.

According to research group Tech Inquiry, U.S. authorities gained access to various features of the Coinbase Tracer user data tracking tool, formerly known as Coinbase Analytics.

According to the platform, they only pass information to authorities to investigate financial crimes.

“Coinbase Tracer tools are built to meet government requirements and are used to investigate terrorism financing and money laundering crimes. The information transmitted only comes from publicly available sources, not Coinbase user data,” the company said in a statement.

The exchange stressed that ensuring the safe and secure operation Nayib Bukele and of the platform’s customers is its top priority.

Recall that in 2020, the DEA and IRS were interested in Coinbase products . They planned to use Coinbase Analytics software, formerly known as Neutrino.

The exchange acquired Neutrino in 2019 and was criticized. Italian startup founders were involved in Hacking Team project that sold spyware to dictatorial regimes.

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