Tech Provider To Coinbase Refutes Allegations Of Selling User Data To Third Parties

Elliptic, a blockchain-based analytics company from London, which is a technology provider to one of the largest crypto exchanges in the world-Coinbase, refuted the allegations that they collect and sell user data to third parties in return for money. In today’s blockchain news, we are updating you on this situation that was previously published on our website.

Elliptic’s CEO and co-founder James Smith, published an official statement yesterday stating that the company has never ‘’enabled the violation of individuals’ financial privacy’’ and that the accusations are just a huge misunderstanding of the company’s industry role.

The blockchain-based company is one of the more important blockchain players in the industry which provides analytics tools that enable companies and law enforcement agencies to monitor the blockchain transactions but also to be able to track any suspicious, illicit activities such as money laundering.

As reported, there were multiple accusations that key players such as Elliptic are selling their clients’ user data for money after the senior Coinbase executive was impelled to justify the exchange’s controversial acquisition of the blockchain-based analytics company Neutrino.

Smith explained in his statement:

 “Our exchange clients, including Coinbase, do not provide us with any personally identifiable information about their users. Our clients use our solutions to screen specific transactions for risk […] We only allow our solutions to be used in order to combat financial crime, and do not allow it to be used for marketing, business intelligence, or any other purpose.”

Coinbase CEO Brian Armstrong revealed that the staff of Neutrino had connections with the controversial software firm Hacking Team but that they will transition out of their roles at Coinbase.