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Coinbase Technology Provider Denied Circling Customers Data for Financial Gain Accusations

By Chris Torres | March 6, 2019
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Coinbase Technology Provider Denied Circling Customers Data for Financial Gain Accusations

Elliptic – the Blockchain assets analytics and security service provider that supplies most of Coinbase’ current technology – has recently denied claims accusing it of acquiring illegal funds by exploiting customer information and selling it to third-party organizations.

On March 4, CEO and co-founder of Elliptic James Smith said in a public statement that the company always expressed zero tolerance towards committing “the violation of individuals’ financial privacy”, and that the allegations showed a wrong perspective of the actual industrial role of Elliptic.

“Our exchange clients, including Coinbase, do not provide us with any personally identifiable information about their users. Our clients use our solutions to screen specific transactions for risk […] We only allow our solutions to be used in order to combat financial crime, and do not allow it to be used for marketing, business intelligence, or any other purpose.” Smith claimed.

Elliptic has backed Smith’s statement by publishing a document that pointed out specific details regarding the exact mechanisms and nature of the data used for the transaction screening and potentially illegal fund and actors analysis protocols.

Elliptic is widely known in the crypto world as one of the heavyweights in Blockchain analytics field, building intelligence products that help businesses, governmental officials and departments supervise crypto-related transaction as well as detect potential criminal activities like money laundering. Accusations suspecting heavyweights like Elliptic could be exploiting their users’ data appeared when a Coinbase employee had to answer the questions about the firm’s Neutrino acquisition that generated controversial arguments.

As The Crypto Sight reported today, co-founder and CEO of Coinbase Brian Armstrong has announced that Neutrino staffs who involved in Hacking Team software firm will be moved out of Coinbase, in response to the #DeleteCoinbase movement due to Neutrino acquisition.

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