Coinbase clarifies on selling clients’ data allegations

TL;DR Breakdown
  • Coinbase denies claims that its selling clients’ data to the US government.
  • The crypto exchange only shares information from public sources.

Cryptocurrency trading platform Coinbase has discredited allegations claiming that the Company is selling the Department of Homeland Security’s Immigration and Customs Enforcement (ICE) with client information have been discredited.

Online rumors about the exchange giving the ICE geolocation data started to spread on Thursday. Due to this, members of Twitter like Solobase Mac expressed their disbelief and the fact that they “didn’t sign up for that.”

Coinbase announced on Twitter that the Company does not sell proprietary client data. The exchange emphasized that providing platform users with a safe and secure experience is its top concern.

Coinbase relationship with the government

The cryptocurrency platform has also stated that its Coinbase Tracer tools were developed to adhere to legal regulations. According to the Company, this is used to look into financial crimes including money laundering and supporting terrorism. 

The exchange claims that the data they give to the government does not include any user information from Coinbase, but just information from public sources.

In September 2021, Coinbase and ICE signed a contract for the latter to create software for ICE. The exchange is required by the agreement to offer “application development software as a service.”  The deal would see the government agency pay the exchange  $1.36 million.

Despite the difficulties brought on by the current crypto winter, the Company wants to grow its business in Europe. The exchange is authorized to conduct business in nations like Germany, Ireland, and the United Kingdom, and it has started hiring employees in Switzerland.

The corporate family rating (CFR) for the Company, which reflects Moody’s assessment of the company’s capacity to meet its financial obligations, was reduced last week. The senior unsecured notes that are guaranteed by the exchanges but are not secured by any assets were also downgraded by the rating agency.

Lacton Muriuki

Lacton Muriuki

Lacton is an experienced journalist specializing in blockchain-based technologies, including NFTs and cryptocurrency. He dabbles in daily crypto news rich with well-researched stats. He adds aesthetic appeal, adding a human face to technology.

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