47% of users will leave the Coinbase platform for offering surveillance tools to the US government according to the latest reports that we have in our latest Coinbase news.
The latest documents that emerged in the public that the largest US-based crypto exchange COinbase plans to sell blockchain analytics software or surveillance tools to the US government agencies, resulted in a response of 47% of users saying they will leave the exchange, according to the Twitter poll conducted a few days ago.
The public records linked with the popular crypto exchange will be provided with the Drug Enforcement Administration and the Internal Revenue Service as both of the agencies will buy licenses from the company’s analytics platform named Coinbase Analytics. The IRS document that was published in April this year, shows the connection between Coinbase Analytics and Neutrino, the blockchain intelligence platform that was purchased by Coinbase last year. Right after the acquisition, the controversy emerged as some of the Neutrino founders were involved in an Italian spyware firm- Hacking Team. Coinbase said that it would part ways with those staff members. According to the IRS document:
“As law enforcement techniques evolve and other cryptocurrencies gain acceptance, criminals are using other types of cryptocurrencies, not just Bitcoin, to facilitate their crimes. In addition to the Bitcoin Blockchain, Coinbase Analytics (aka Neutrino) allows for the analysis and tracking of cryptocurrency flows across multiple blockchains that criminals are currently using.
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.”
The US Government and DEA documented that the Coinbase Analytics company will provide the investigators with identity attribution and de-anonymities virtual currency which will address internationally and domestically. CA is known for its accuracy of attribution which includes elements that are used in commercial blockchain tracing tools. This is critical in avoiding fake-positive during target identification. The DEA paper also described Coinbase Analytics as the ‘’least expensive tool on the market with most features for the money.’’
While the data is not conclusive, Coinbase could make up to $250,000 on the deal, at least according to the documents. Popular crypto analyst Josh Rager conducted a twitter poll asking whether the community will delete or stop using the Coinbase account. 47% of users will delete their accounts.
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