The Nasdaq-listed cryptocurrency exchange Coinbase has insisted that it does not sell “proprietary customer data” after reports surfaced that its Tracer product is providing “historical geo tracking data” to the U.S. Immigrations and Customs Enforcement (ICE).
Coinbase responds to reports that it is selling customer data to the U.S. Government
Coinbase, a cryptocurrency exchange that is listed on Nasdaq, was under attack last week after reports claimed it sold customer data to U.S. authorities.
Coinbase Tracer, the analytics arm of the cryptocurrency exchange, has signed a contract with U.S. Immigrations and Customs Enforcement (ICE) that would allow the government agency access to a variety of data, including “historical geo tracking data,” according to a contract obtained by watchdog group Tech Inquiry.
However, Coinbase clarified on Twitter Thursday: “We want to make this incredibly clear: Coinbase does not sell proprietary customer data.”
“Our Coinbase Tracer tools are designed to support compliance and help investigate financial crimes like money laundering and terrorist financing. Coinbase Tracer uses public information and doesn’t use Coinbase users data. Ever,” the exchange further tweeted.
However, many people on Twitter do not believe that Coinbase is not selling any customer data to the U.S. government, noting that the company specifically uses the word “proprietary” to describe the data it is not selling.
Coinbase sold a single software license for analytics to ICE in August 2013 at $29,000, and then ICE bought a second software package potentially valued at $1.36 million next month.
Tech Inquiry requested the complete contract via Freedom of Information Act. The Intercept reported this story initially on Wednesday.
The disclaimer on the Coinbase website reiterates what the company tweeted Friday, stating: “Coinbase Tracer sources its information from public sources and does not make use of Coinbase user data.”
Is Coinbase selling U.S. customer data? Comment below.
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