Lately the American crypto exchange has continued to occupy the main news headlines. Now, it appears that Coinbase is providing its Blockchain analytics software, Coinbase Analytics, to the United States Secret Service.
Coinbase Analytics in controversy
Yesterday, The Block news portal obtained a public record that appears to demonstrate that Coinbase provides its service, Coinbase Analytics, to the United States Secret Service.
To be more precise, the record shows that a four-year contract was established in May this year to use Blockchain analytics software, called Coinbase Analytics.
You are probably wondering: And how much is the value of the contract? Well, according to the registry, it has a total value of $ 183,750. It also ends on May 9, 2024.
For those who don’t know, the Secret Service is part of the United States Department of Homeland Security. In this sense, it is in charge of conducting financial crime investigations.
It’s not the first time
The truth is, this news shouldn’t come as a surprise to the crypto community. And it is that, during the last month, it was reported that Coinbase was starting to write an agreement with the United States Drug Enforcement Agency (DEA) and with the Internal Revenue Service (IRS).
However, it seems that those contracts were not concluded, unlike the one mentioned above.
Coinbase Analytics, a mystery
But, the question that still remains to be answered is: What does Coinbase Analytics have to offer that is so attractive to these agencies?
To try to answer the previous question we must start by pointing out that Coinbase Analytics is the platform previously known under the name of “Neutrino”.
Yes, in February 2019, Coinbase reported through its blog on Medium the acquisition of Neutrino, a Blockchain intelligence platform.
Basically they aimed to use the platform to “analyze data from public blockchains.” This with the aim of preventing background theft, investigating ransomware attacks and identifying bad actors.
In the past month, when the IRS wanted to purchase the service, the tax agent said that “Coinbase Analytics (Neutrino) enables the analysis and monitoring of cryptocurrency flows across multiple Blockchains currently used by criminals.”
Obviously, this tool is offered to the main authorities of the United States has generated various criticisms. In fact, the effect has been such that since last month many users have decided to abandon the crypto exchange.
However, the platform assured The Block that Coinbase Analytics data is publicly online. He also added that “They don’t include any personally identifiable information, regardless of whether they use Coinbase or not.”
In this same sense, Brain Armstrong, CEO of Coinbase, went to the social network to talk about the subject. Armstrong assured his community that this tool allows the integration of both worlds: Crypto and Fiat. For that reason, it is necessary.