07-01-2022 icon

Coinbase dismisses allegations of selling users’ details to US authorities

By Lucy Adegbe

Coinbase has refuted claims that it was giving out its customers’ sensitive data to authorities. The exchange, however, said it was compliant in equipping the government with information that could facilitate scrutiny of economic crimes.

A Thursday announcement had dissipated claims around social media that Coinbase allowed the United States Immigration and Customs Enforcement access to scrutinize its customers’ database through its platform tracer.

The news spurred reactions from various customers on the Twitter platform including Solobase Mac who in all amazement highlighted:

“Now why would they be doing that? So basically an invasion of privacy. Sell without knowledge? They will be owing me 10 million for that one. I didn’t sign up for that one. What the hell could this be real or false? Man so much running through my head right now.”

However, the trading platform has refuted the claims, mentioning that the company “does not sell proprietary customer data.”

Further tweets by the exchange explained that its protocol Tracer mechanism was formulated to comply with the authority’s regulation and this does not coincide with the utmost prerogative of providing a stable and safe experience for its customers. 

The tweet also stated that all information given to the ICE to help with their fight against economic crimes is generated from public streams and not from its customers’ details.

Coinbase had approved a transaction in September 2021 to deliver to the authorities an “application development software” at a fee of $1.36 million.