Coinbase denies reports of selling customer data to the US government
Crypto exchange platform Coinbase denied reports alleging that the company is selling its customer information to the United States Immigration and Customs Enforcement (ICE), an agency that works under the country’s Department of Homeland Security.
On Thursday, news that Coinbase has been providing geolocation data to the ICE has circulated online. Because of this, Twitter users like Solobase Mac were shocked and noted that they "didn't sign up for that." They tweeted:
Now why would they be doing that? So basically invasion of privacy. Sells with out knowledge? They will be owing me 10 million for that one. I didn’t sign up for that. What the hell could this be real or false. Man so much running through my head right now.
In a statement on Twitter, Coinbase clarified that the firm “does not sell proprietary customer data.” The exchange highlighted that its foremost priority is giving a safe and secure experience to the users of the platform.
Additionally, the crypto platform has also explained that its Coinbase Tracer tools are created to comply with government requirements. Coinbase noted that this is used to investigate finance-related crimes such as terrorist financing and money laundering. According to the exchange, the information they provide to the government comes only from public sources and not from Coinbase user data.
Back in September 2021, Coinbase inked a deal with the ICE for developing software for the government agency. The agreement compels the exchange to provide "application development software as a service" to the ICE in exchange for $1.36 million.
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