Coinbase denies reports of selling customer data to the US government

Coinbase, a cryptocurrency exchange platform, has denied reports claiming that the company sells customer information to the US Immigration and Customs Authority (ICE), an agency operating under the US Department of Homeland Security.

On Thursday, news spread online that Coinbase is providing geolocation data to ICE. This shocked Twitter users like Solobase Mac and said they “did not sign up for it.” They tweeted:

Why are they doing that? In other words, it’s basically a privacy breach. Do you sell without knowledge? They will pay me 10 million for that. I didn’t sign it up. Is this true or wrong? A man running a lot in my head right now.

Solobase Mac (@Blacktalizman) June 30, 2022

In a Twitter statement, Coinbase Clarification The company states that it “does not sell its own customer data.” The exchange emphasized that its top priority is to provide platform users with a safe and secure experience.

In addition, crypto platforms explanation The Coinbase Tracer tool is designed to comply with government requirements. Coinbase said it will be used to investigate financial crimes such as terrorist financing and money laundering. According to the exchange, the information they provide to the government comes only from public sources, not from Coinbase user data.

In September 2021, Coinbase signed a contract with ICE to develop software for government agencies. The agreement forces the exchange to offer “Application Development Software as a Service” to ICE in exchange for $ 1.36 million.

Related: Coinbase to track off-exchange transactions from Dutch customers

Despite the setbacks caused by the current crypto winter, Coinbase is trying to expand its business in Europe. The exchange has begun hiring staff in Switzerland and is permitted to operate in countries such as Germany, Ireland and the United Kingdom.

Last week, credit rating agency Moody’s downgraded Coinbase’s Corporate Family Rating (CFR). This is the company’s opinion regarding Coinbase’s ability to pay its financial obligations. Rating agencies have also downgraded exchange-guaranteed senior unsecured bonds, which are debts that are not backed by collateral assets.