The cryptocurrency exchange Coinbase has denied selling confidential user data to the U.S. government.
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Earlier reports suggested that Coinbase was sharing geolocation histories and customer transaction data with Immigration and Customs Enforcement (ICE) of the U.S. Department of Homeland Security. Users on Twitter said they “did not sign up for this.”
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In August 2021 Coinbase sold a license to ICE for analytical software for $29,000. A month later the exchange signed a deal with the agency to transfer software worth $1.36 million.
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According to the Tech Inquiry research group, U.S. authorities gained access to various features of the Coinbase Tracer data-tracking tool, previously known as Coinbase Analytics.
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According to the platform’s representatives, they provide authorities only information for investigations into financial crimes.
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“The Coinbase Tracer tools are designed in accordance with government requirements and are used to investigate crimes related to financing terrorism and money laundering. The information transmitted comes only from publicly available sources, not from Coinbase user data,” the company said.
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The exchange emphasised that ensuring a safe and reliable experience for users remains its top priority.
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As a reminder, in 2020 Coinbase products drew the attention of the DEA and IRS. They planned to use the Coinbase Analytics software, previously known as Neutrino.
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The exchange acquired Neutrino in 2019 and faced criticism. The founders of the Italian startup were involved in the Hacking Team project, which sold spyware to dictatorial regimes.
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