Blockchain Analytics Firm Chainalysis Clarifies Coinbase Data Allegations

By Tracy Hannes | March 7, 2019
Blockchain Analytics Firm Chainalysis Clarifies Coinbase Data Allegations

On March 5th, blockchain analytics firm Chainalysis has published an official blog post claiming that the firm does not sell their users’ personal data when performing transactions.

Recently, Coinbase has claimed that its former data providers have exploited customer information and sold it to third parties during the Neutrino controversial acquisition.

Based in New York, Chainalysis provides technology such as the anti-money laundering software for Bitcoin businesses called Know Your Transaction (KYT). The product allows firms, governments and law enforcement agencies to track their blockchain transactions with case management capabilities.

Although Coinbase director Christine Sandler did not mentioned any firms’ names, Chainalysis has made a public statement towards this controversy. The firm clarified that the company does not require or store any personal data during transaction analysis.

The company has explained how they collect and use service-level data: “Exchanges that use Chainalysis KYT (Know Your Transaction) for AML compliance submit their transaction data — not personally identifiable customer data — to Chainalysis to automate the process of transaction monitoring.”

Chainalysis continues to clarify that the firm only flags a transaction when there are indicators of risky behavior. Transactions will be counted as illicit services if there are any sign of darknet market or terrorist financing organization. The firm further added: “Chainalysis only knows that a particular address belongs to a customer at that exchange, not who the customer is.”

Coinbase’s allegations about exploiting customer information to third parties has left many data providing firms with public clarifying statement. As The Crypto Sight reported yesterday, CEO and co-founder of Elliptic James Smith – blockchain assets analytics and security service provider, denied claims accusing it of selling client data to outside sources.

Also on the same day, CEO of Coinbase Brian Armstrong has announced that  Neutrino staffs with prior connection to Hacking Team software firm will be discharged out of Coinbase.

Tags: , , , , ,