Two-thirds of people who use Coinbase are willing to leave the platform following reports that the U.S. exchange plans to sell user data to two government agencies for $250,000.
Cryptocurrency trader and analyst John Rager carried out a poll on Twitter, asking his 73,000 followers: “Would you actually delete or stop using your Coinbase account?”
Over 5,000 people responded, and 66% said they would opt out of the regulated exchange, one of the world’s biggest. The remaining 33% expressed a willingness to stay. The platform holds thousands of personal user information drawn from stringent know-your-customer requirements, in compliance with US policies.
Coinbase is in the eye of a storm after reports emerged at the weekend alleging that the crypto exchange is selling a blockchain tool that provides law enforcement agencies with superior analytical capabilities.
The Drug Enforcement Agency (DEA) and the Internal Revenue Service (IRS) intend to buy licenses from the exchange’s analytics unit called Coinbase Analytics, according to documents that are available for public review.
In one of the documents published in April, the IRS points out the relationship between Coinbase Analytics and Neutrino, a blockchain surveillance platform controversially acquired by Coinbase in 2019. It says the subsidiary “allows for the analysis and tracking of cryptocurrency flows across multiple blockchains that criminals are currently using.”
The IRS added: “Coinbase Analytics also provides some enhanced law enforcement sensitive capabilities that are not currently found in other tools on the market. This action will result in a Firm Fix Priced purchase order, Period of Performance: One base year from date of award with one 12-month option.”
On the other hand, the DEA document observes that Coinbase Analytics (CA) “provides investigators with identity attribution and de-anonymities virtual currency addresses domestically and
