Coinbase confirmed that the crypto exchange was not selling its users' data and that it only provided information for financial crime investigations.
Coinbase, a cryptocurrency trading platform, has refuted reports that it is selling client information to the United States Immigration and Customs Enforcement (ICE), an agency of the Department of Homeland Security.
On Thursday, it was revealed that Coinbase has been giving geolocation data to the ICE. As a result, Twitter users like Solobase Mac were taken aback and stated that they "didn't sign up for that."
Coinbase confirmed on Twitter that the company "does not sell proprietary user info." The exchange emphasized that the platform's top aim is to provide consumers with a safe and secure experience.
Furthermore, the bitcoin site has stated that its Coinbase Tracer tools are designed to meet government regulations.
According to Coinbase, this is used to investigate financial crimes such as terrorism financing and money laundering.
The exchange claims that the information it provides to the government is derived solely from public sources and not from Coinbase user data.
Coinbase signed a partnership with ICE in September 2021 to build software for the government agency. The deal requires the exchange to provide the ICE with "application development software as a service" in exchange for $1.36 million.