Coinbase, a major cryptocurrency exchange, is reported to sell location data to law enforcement agencies



Coinbase , one of the world's leading crypto exchanges, sells location data to the United States Immigration and Customs Enforcement Authority (ICE) through crypto trading analysis software, the foreign media The Intercept reported. A Coinbase spokeswoman explains that the location information we sell is 'based on public sources, not Coinbase user data.'

Cryptocurrency Titan Coinbase Providing “Geo Tracking Data” to ICE
https://theintercept.com/2022/06/29/crypto-coinbase-tracer-ice/



Coinbase Is Reportedly Selling Geolocation Data to ICE
https://www.coindesk.com/business/2022/06/29/coinbase-is-reportedly-selling-geo-location-data-to-ice/

Coinbase has developed software called 'Coinbase Tracer' that can track users' cryptocurrency transactions, and sells the software itself and licenses to US government agencies. In May 2020 and April 2021, we signed a relatively small license agreement with the United States Secret Service for less than $ 50,000 (about 5.3 million yen at the rate at that time), and in September 2021 we signed a relatively small license agreement with ICE 136. We signed a large contract of 10,000 dollars (about 140 million yen at the rate at that time).

Until now, it was unclear what features would actually be provided to the ICE through Coinbase Tracer, but a document obtained by the watchdog Tech Inquiry under the Information Disclosure Act revealed the details of the features. .. According to the document, Coinbase Tracer can be used to track cryptocurrency transactions via the blockchain. Although the blockchain distributed ledger is open to the public from the beginning, it is very difficult to analyze huge amounts of data without using software tools, so Coinbase Tracer allows law enforcement agencies to exchange virtual currencies. It will be a great help to track down.

Coinbase says it will sell Coinbase Tracer for corporate compliance and law enforcement investigations, 'connecting real-world entities to cryptocurrency addresses' and 'investigating illegal activity, including money laundering and terrorist financing.' 'It is explained that it will be possible. ICE that purchased Coinbase Tracer can track about 12 types of cryptocurrency transactions including Bitcoin Ethereum tether, and it seems that it can also use the function to detect money laundering and camouflage of transactions.

The document obtained by Tech Inquiry also states that Coinbase Tracer provides 'past location tracking data', but we know exactly what data source this data is based on. Is not ... When The Intercept contacted Coinbase on this matter, Coinbase spokeswoman Natasha LaBranche said on the website , 'Coinbase Tracer gets information from public sources and uses Coinbase user data. I'm not doing it. ' However, he did not answer about how ICE actually uses Coinbase Tracer or the restrictions that Coinbase has set for its use.



In recent years, Coinbase has been promoting the analysis function to the Secret Service and ICE in the United States, the Internal Revenue Service (IRS) in the United States, and the Drug Enforcement Bureau . John Kothanek, Vice President of Global Intelligence at Coinbase in the United States Congress in June 2022, testified that Coinbase will support national security. 'If you're a cybercriminal and you're using cryptocurrencies, you'll have a tough day.' 'Coinbase will track you, find money, and help the government seize cryptocurrencies.' Said.

Coinbase's cooperation with the government is controversial, as the crypto community is close to libertarianism , which strongly insists on individual freedom, and in fact crypto is often used by criminal organizations. In addition, Coinbase Tracer was accused of being involved in the development by a member who had been arrested for selling spyware to the governments of African and Middle Eastern countries at the beginning of development, and Coinbase decided to remove the member from the development team . ..

In addition, Coinbase announced that it has canceled the offer of new hires in response to the plunge of major virtual currencies since the beginning of 2022, and will also dismiss about 1,100 people, which is 18% of employees. doing.

Coinbase, a major cryptocurrency exchange, has fired about 1,100 people, 18% of its employees, and the CEO admits that it has 'grown too fast'-GIGAZINE



in Software,   Web Service,   Security, Posted by log1h_ik