The largest American cryptocurrency exchange was forced to respond to rumors that it was leaking user data for money to an agency under the US Department of Homeland Security.
Coinbase tweeted a rebuttal: The company does not sell customer information to US Immigration and Customs Enforcement (ICE). Messages spread on Thursday, June 30, and users lashed out at the crypto exchange.
“The exchange is doing this without my permission? Selling data without the knowledge of users is an invasion of privacy. I didn’t sign up for this. They will owe me $10 million.” formulated one of the clients of the site.
Coinbase assuredthat the top priority is to ensure the safe and reliable operation of the platform. Exchange tools, such as Coinbase Tracer, are designed to comply with government regulations and are used to investigate financial crimes, not to spy on users. According to the exchange, the information that the government receives about customers is collected only from publicly available sources, and not from internal databases.
Last September, Coinbase signed a $1.36 million contract with ICE to develop software for government agencies. Analysts at investment bank Goldman Sach recently downgraded Coinbase from Neutral to Sell as the exchange’s shares have fallen 75% over the past year.