Recently, cryptocurrency exchange Coinbase was at the receiving end of a lot of criticism, when it emerged that its latest acquisition Neutrino was working with an establishment that was selling users’ data to third parties.
As earlier reported by Crypto-News India, Coinbase had acquired Neutrino, a blockchain intelligence firm based in London, for an undisclosed amount. The firm would continue to operate from its London office, but Coinbase would still have access to its data in a more readily available manner after the acquisition. Coinbase had said in its acquisition statement that blockchain intelligence is the thing that will contribute to the creation of an open and protected financial system. The company aims to utilize the data and intelligence provided by Neutrino for detecting and investigating hacks, ransomware attacks and suspicious transactions.
Following the outrage among the community which kickstarted the Twitter campaign, #DeleteCoinbase, the exchange put out a statement saying, “We are aware of the backgrounds of some of the folks that were involved in Neutrino, and we are looking into that. The compelling reason for making the acquisition was that Neutrino had some really industry leading and best-in-class technology.”
On Monday, Brian Armstrong, the Chief Executive Officer (CEO) of Coinbase put out another statement explaining the due process that would follow. He said, “However, we had a gap in our diligence process. While we looked hard at the technology and security of the Neutrino product, we did not properly evaluate everything from the perspective of our mission and values as a crypto company. We took some time to dig further into this over the past week, and together with the Neutrino team have come to an agreement: those who previously worked at Hacking Team (despite the fact that they have no current affiliation with Hacking Team), will transition out of Coinbase.”
He added that it was not an easy decision to make but their previous work history did present a conflict and it would be taken care of.
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