Coinbase: Former Provider Sold User Data to Third Parties, Prompting Neutrino Acquisition
Christine Sandler, Coinbase’s director of institutional sales, has defended the crypto exchange’s controversial acquisition of Neutrino.
Coinbase’s director of institutional sales has actually defended the crypto exchange’s controversial acquisition of blockchain intelligence firm Neutrino. In an interview with financial online news channel Cheddar on March 1, Sandler stated that previous client information service providers were offering Coinbase user information to outside sources.
As reported, major United States crypto exchange and wallet Coinbase first revealed the Neutrino acquisition on Feb. 19, stating it would utilize the start-up’s advanced blockchain analytics tools, Anti-Money Laundering and Know Your Customer innovation.
The move swiftly became controversial as details of the Neutrino’s co-founders’ backgrounds came to light: specifically, their prior involvement with commercial software firm Hacking Team, whose spyware has reportedly been used by a broad canopy of international governments and law enforcement agencies, with authoritarian regimes allegedly among them.
The Crypto Community Responds With #Deletecoinbase
Even though this explanation for the acquisition of Neutrino looks sensible enough, it seems to have actually aggravated the circumstance on the ground. This info reveals that users private information were never ever safe within the exchange, and this has actually increased the anger of members of the Bitcoin community.
In response to the crypto community’s uproar over these connections — which spawned the #DeleteCoinbase hashtag — Sandler defended the exchange’s decision, telling Cheddar that it was important to leave their current providers due to their data selling practices:
“We are aware of the backgrounds of some of the folks that were involved in Neutrino […] It was important for us to migrate away from our current providers. They were selling client data to outside sources and it was compelling for us to get control over that and have proprietary technology that we could leverage to keep the data safe and protect our clients.”
Defining Neutrino’s technology as “actually industry leading and best-in-class,” Sandler stated that the acquisition represented a choice to bring these tools in-house, minimizing the significance of the talent and senior employees’ histories.
Sandler also provided a reference to Coinbase Pro’s decision to list XRP, whose ambiguous status in the U.S. as a possible security token has hitherto complicated its listing on the California-headquartered exchange. Sandler clarified Cheddar that Coinbase’s acquisition of broker-dealer Keystone in June 2018 allows the platform to list securities, including:
“There had been a groundswell of interest in adding the asset to the platform. There was some speculation about whether the asset would be classified as a security or not — we’re not securities lawyers. We felt there were compelling arguments on either side.”
As just recently reported, Ripple’s head of markets has actually required to social networks to highlight that the Coinbase choice to list XRP was an independent one– countering rumors that Ripple had either paid or used the exchange a reward to do so.
Who is the hacking team?
HackingTeam is a Milan-based infotech company that sells offensive intrusion and surveillance abilities to federal governments, police, and corporations. Its “Remote Control Systems” allow governments and corporations to keep track of the interactions of web users, understand their encrypted files and e-mails, record Skype and other Voice over IP communications, and from another location activate microphones and camera on target computer systems.