Reports have found that Coinbase tracer has reportedly been selling users’ data to the U.S Immigration and Customs Enforcement agency (ICE) including ‘Geo-location’ data according to a contract found by watchdog group Tech inquiry.
The contract revealed that a 3-year deal was made in September of 2021 between ICE, Coinbase, and the DHS which allowed the U.S Federal agency to access intelligence collector ‘Coinbase Tracer’ which contained information of its users including the ‘Geo location’ data of the user.
The intent of this program was to reportedly assist ICE with tracking fraudulent or malicious transactions on the blockchain. However, this does not give I.C.E any new information, instead, it allows ICE to analyze data that is already publicly available on the blockchain.
- Although, a representative from Coinbase stated that the data being transfered is customer data according to CoinDesk.
This comes as recent controversy has plagued Coinbase in recent times as the exchange lays off 18% of employees in preparation for ‘Crypto winter’ as well as the Superbowl Ad controversy.