• Mon. May 20th, 2024

Coinbase Denies Allegation That It Sells User Data To US Gov

Jul 1, 2022

Popular US cryptocurrency exchange, Coinbase, has decided to clear the air after recent allegations. On June 30th, reports circulated claiming Coinbase is selling users’ information to the US ICE (Immigration and Customs Enforcement). 

The ICE is an immigration agency that operates under the nation’s Department of Homeland Security. Furthermore, the report noted that the firm was also selling users’ transaction histories.

News Of The Allegation Sparks Reaction In The Crypto Community 

Following the news on Thursday, the Twitter crypto community expressed shock about the incident. Users such as @Blacktalizman expressed shock and wondered why the exchange would do it. 

Responding to the allegations on Twitter, Coinbase noted that the report was false. Coinbase said it would never sell the customers’ data or infringe on their privacy. 

According to Coinbase, its greatest priority is security and privacy to ensure a safe platform. Coinbase stated that:

“We created the Coinbase Tracer tools as part of the requirements by the US government. The tool is used for investigating financial crimes like money laundering and terrorist financing. Also, the information provided to the authorities are from public sources. They are not from the company’s user database.”

Meanwhile, last December, the exchange signed a deal with the immigration agency. The purpose aims at creating software that would help the immigration organization. 

Due to the deal, Coinbase would provide the ICE with a software for its operations. In return, the agency gave the crypto frim over $1.36 million.

Coinbase Continues Its Global Expansion Amid Ongoing Market Crisis

In other news, Coinbase is expanding its crypto operations in Europe. The US-based crypto firm has already hired staff at its office in Switzerland.

Additionally, it has received a license to operate in the UK, Germany, and Ireland. The company is calm about the crypto winter and is steadfast in branching into other regions.

According to Nana Murugesan, the vice president of the company, the firm wants to secure more licenses. Currently, it focuses on the Netherlands, Spain, Italy, and France.

Although Coinbase continues with its massive expansion to other countries, its operations have declined recently. Due to the ongoing crypto market crisis, the company has laid off some employees. 

In June, it laid off about 18% of its employees. Additionally, it stopped the recruitment of more personnel. However, the firm remains bullish on digital currencies.

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