Coinbase Enables Federal Agency ICE To Access “Geo Tracking Data”

Key Insights:

• As per a new report, Coinbase has been providing users’ geolocation data to ICE.
• Coinbase Tracer has made this information accessible by the agency.
• The crypto exchange is in the crosshair once again after Goldman Sachs lowered its rating to “sell”.

The biggest in the United States and the second biggest cryptocurrency exchange in the world, Coinbase has once again entered the news but not for making any strides.

A new report highlighting Coinbase’s dealings has surfaced with details of data selling to federal agency ICE.

Coinbase Provides Geo-Tracking Data

As per a new report released by The Intercept, a new contract document shows that the Immigrations and Customs Enforcement (ICE) has gained access to a variety of forensic features provided through Coinbase Tracer.

The Coinbase Tracer is an intelligence-gathering tool that allows the clients (government and private) to trace transactions through the blockchain.

According to Coinbase, the ability of the Tracer to “investigate illicit activities including money laundering and terrorist financing” and “connect [cryptocurrency] addresses to real world entities” is what appeals the most to corporate compliance and law enforcement investigations.

However, this is not new since back in August 2021, Coinbase had sold ICE a single analytics software license for $29k. Following this, the crypto exchange secured a $1.3 million contract with the law enforcement agency the next month.

Now in a new document, it has been found that ICE has become capable of tracking the transactions conducted through more than 12 different crypto blockchains, including but not limited to Bitcoin, Ethereum, and Tether.

Upon questioning Coinbase about the same, the Coinbase spokesperson Natasha LaBranche only pointed The Intercept in the direction of a disclaimer reading,

“Coinbase Tracer sources its information from public sources and does not make use of Coinbase user data.”

Since the contract has no legal limitation, ICE can use this tool and data any way they want to.

Coinbase Triggers

This information enraged some users, but it is not just them, as Coinbase has been losing the support of market players.

As reported by FXEmpire a few days ago, global banking and investment firm Goldman Sachs also slashed the crypto exchange’s rating to “sell” following the 86.7% downfall beginning last November.

Currently trading at $49.78, COIN declined by another 22.3% over the last three trading days, with the day trading depreciation invalidating the 30.82% recovery it made throughout June.