It turns out that Coinbase Global (NASDAQ: COIN) isn’t all that focused on the privacy of its users. At least not to the extent that crypto investors would expect, given that users frequently use such currencies for anonymity.
It was revealed by the Intercept last night that Coinbase is selling features to the US Immigrations and Customs Enforcement data that enables Homeland Security to track down and identify crypto traders. The data is based on documents identified by Tech Inquiry, a watchdog group.
Reportedly, a $29,000 contract was entered into last August for a software license, which was followed by a September contract for $1.36 million that reportedly expanded features offered. The contract pertains to Coinbase Tracer, which enables transactions to be traced through the blockchain, eliminating much of the hassle associated with attempting to track money through the ledger.
What’s more, is the data contains geo-tracking data. The product offering is reportedly offered as a means of enabling law enforcement agencies to “investigate illicit activities including money laundering and terrorist financing.” The tool is reportedly capable of tracing transactions in up to almost a dozen crypto currencies, including bitcoin, tehter, and ether.
Coinbase Global last traded at $49.75 on the Nasdaq.
Information for this briefing was found via Edgar and the sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
