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Coinbase Claimed to Misspeak On Sharing Customers Personal Information

By | March 7, 2019
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Coinbase Claimed to Misspeak On Sharing Customers Personal Information

In an interview with Cheddar last Friday, Coinbase’s director of institutional sales Christine Sandler, claimed that their previous providers were “selling client data to outside sources.” Now Coinbase stated that Sandler has, indeed, misspoke.

According to Coindesk, a Coinbase anonymous spokesperson said that their exchange “never shared our customers’ personally identifiable information with any third-party blockchain analysis vendors.”

“While we will always do what’s necessary to remain compliant in the regions in which we operate, we will not share broad sets of transaction and address information with vendors if it is beyond their immediate scope of work.” the spokeperson continued.

After the interview of Coinbase with Cheddar on March 1, two companies has raised up their voices so far regarding to the data leaking scandal.

Blockchain analytics firm Chairnalysis claimed that the firm does not sell their users’ personal data when performing transactions, stating: “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.”

Earlier, Coinbase’s technology provider Elliptic claimed 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, reported by The Crypto Sight on Mar 6.

#DeleteCoinbase campaign on Twitter bursted out due to the Neutrino acquisition of Coinbase. Users are posting pictures and video of themselves deleting Coinbase’s accounts. A former Coinbase user, who goes by the Twitter name @Lowbtc, said: “On top of the ethical failure, I also consider this a massive security risk, letting those people have access to customer data. It’s really frightening to think who has gained access to Coinbase customer data over the years.”

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