Coinbase is promoting its blockchain analytics software program to the U.S. Department of Homeland Security and the U.S. Secret Service. Following criticisms from the crypto group, CEO Brian Armstrong defended Coinbase’s place.
Coinbase Selling Analytics Software to US Government
Public data on the U.S. authorities’s web sites reveal that the San Francisco-based crypto alternate Coinbase has signed a contract with the U.S. authorities for its blockchain analytics software program. The data had been first noticed by The Block.
The contract, awarded by the U.S. Department of Homeland Security (DHS), was signed on May 9. It went into impact the subsequent day with a tentative finish date of May 11, 2024. The obligated quantity is at present $49,000 and the potential award quantity is $183,750. The contracting company is the U.S. Secret Service, a federal company that investigates financial crimes comparable to fraud and counterfeiting; it was transferred from the Department of the Treasury to the Department of Homeland Security on March 1, 2003.
Coinbase’s contract with the U.S. Department of Homeland Security and the U.S. Secret Service for its blockchain analytics software program. Source: U.S. authorities’s web site.
Following the information of Coinbase promoting its analytics software program to the U.S. Secret Service, many individuals took to Twitter to criticize the corporate’s motion, with some urging others to “delete Coinbase,” saying that the corporate is “dangerous for bitcoin and crypto.”
Coinbase CEO Brian Armstrong shortly defended his firm’s choice. “Blockchain analytics software program is nothing new – has been round a very long time – it makes use of publicly obtainable information to attempt to observe crypto transactions – normally to catch dangerous actors,” he tweeted.
Armstrong proceeded to clarify that his firm began off by utilizing a number of the present blockchain analytics companies on the market. “This labored out okay, however the challenge with it was that we don’t like sharing information with third events after we can keep away from it, they usually didn’t help all of the options/chains we wanted. So we realized sooner or later we would wish to convey this functionality in home,” the CEO described, elaborating:
It’s costly to construct this functionality, and we wish to recoup prices. There is an present marketplace for blockchain analytics software program, so we promote it to a handful of oldsters as nicely. It additionally helps us construct relationships with legislation enforcement which is vital to rising crypto.
Last month, it was reported that Coinbase needed to promote its analytics software program to 2 different U.S. authorities businesses: the Drug Enforcement Administration (DEA) and the Internal Revenue Service (IRS). Meanwhile, the corporate is reportedly planning an preliminary public providing (IPO) within the U.S.
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