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Coinbase is reportedly selling geolocation data to ICE (theintercept.com)

769 points by rukshn · 1535 days ago · 417 comments on HN

Article summary

Coinbase, a cryptocurrency exchange, has sold a software license to ICE, allowing the agency to track and identify cryptocurrency users. The software, called Coinbase Tracer, uses public data from the blockchain to analyze transactions. ICE can use the tool to track transactions made through various digital currencies, including bitcoin and ether. The contract also includes access to historical geolocation data, although the source of this data is unclear.

Main themes

  • cryptocurrency surveillance
  • user privacy
  • blockchain analysis
  • ICE and law enforcement
  • Coinbase and cryptocurrency industry ethics
  • decentralization and state control

What commenters say

  • The article's headline is misleading because Coinbase is selling a tool that processes publicly available data, not selling user data.
  • Coinbase's decision to sell this tool to ICE is problematic because it facilitates surveillance and potentially infringes on user privacy.
  • The use of public blockchain data for analysis is not inherently problematic, as the data is publicly available and can be used for legitimate purposes such as tracking illicit activities.
  • The fact that Coinbase is selling this tool to ICE raises questions about the company's values and priorities, particularly in the context of the cryptocurrency industry's emphasis on decentralization and privacy.
  • Some commenters argue that switching to a different exchange or using a private wallet may not be effective in avoiding surveillance, as the data is publicly available.
  • Others suggest that using privacy coins such as Monero or Zcash could help to break the ownership chain and maintain anonymity.
  • The sale of this tool to ICE is seen as a contradiction to the ideals of the cryptocurrency industry, which emphasizes decentralization and reduced state control.
  • The use of geolocation data raises concerns about how this data is sourced and whether it may be derived from proprietary or private sources.