The fact that companies sell their user's data is not something new, look at Meta formerly known as FaceBook, it is basically their whole business model. But so far with the decentralized nature of the crypto space, I thought we would not see that thing here. But it appears I was wrong.
Immigration and Customs Enforcement (ICE) uses data provided by Coinbase to track people
Given the recent history with ICE in the media, I am thinking especially of the formers US president's 4 years in power. To say ICE is not viewed favorably would be an understatement. So having it be that arm of the US Government that is using the data is probably the worst case possible. For Coinbase that is.
To start I personally hate how companies are doing this and how hardly anyone seems to care that their data is out there for anyone to use in any way shape or form they like. And if you are one of the people who think "how bad can it be" well if you do not want to do some googling and go down the rabbit hole. I can recommend Last Week Tonight episode where they do a pretty good job highlighting the issues.
It appears that the tracking is linked to a deal signed between Coinbase and ICE back in September of 2021 worth 1,36M. Just in case you are one of the users on Coinbase and happen to wonder what your data is worth.
Coinbase denies selling user data*
Coinbase a few hours after the news broke made a statement where they denied selling any user data. Oh, you noticed the * there, well that was not our intention. What does it mean? To be exact, they clarify that they do not sell "does not sell proprietary customer data". Coinbase also points the finger at the US Government citing "Coinbase Tracer tools are created to comply with government requirements".
Why would the tracer tools not be according to the Government requirements, they paid for them to be made. So it would have been a pretty crappy deal if they paid and did not get what they paid for. And at least in Sweden if companies need to comply with the Governments requirements they do not get paid for doing so.
What do you think about all this, do you agree with Coinbase's way of doing business? Or do you think that data selling is done by the scum of the earth? Please share your thoughts on this down below in the comment section.
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Picture provided by: https://www.coinbase.com/press
