Elliptic and Chainalysis denied Coinbase’s claim that its providers sold client data, stating that they did not have access to customer IDs or transaction hashes in the first place.
The US-based crypto exchange, Coinbase, was at the receiving end of the crypto community’s backlash for acquiring the Italy-based analytic firm, Neutrino.
Coinbase’s Director of Institutional Sales, Christine Sandler, claimed that its partners had sold user data to the third parties. This drew Elliptic and Chainalysis into the picture, even though Sandler had not revealed any names.
After the allegations surfaced, Chainalysis clarified that it did not collect or share users’ credentials.
On a blog post, Chainalysis stated,
“We do not share any personally identifiable information about cryptocurrency users with exchanges. When we screen a transaction in KYT for an exchange customer, we add it to our list of transactions made by that service.”
The transaction data submitted by the exchanges via KYT [Know Your Transaction] is not personally identifiable customer data and is focused solely to keep tabs on any suspicious transaction settlements.
The latest to clarify its stance over the Director’s claim was the blockchain analytics company – Elliptic. Confirming that the firm did not require or request any transaction data or individual credentials, Dr. James Smith, Elliptic’s CEO, stated in a blog post,
“Elliptic has no access to end users’ personally identifiable information. 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.”
The CEO further stated that the exchange did not hold KYC data on its platform. He also explained that for transaction purposes on the platform, users are assigned unique customer IDs which contain ‘no personally identifiable information.’
Like Chainalysis, Smith detailed that a Customer ID was mainly used to monitor customer’s transaction behavior and flag any suspicious transactions. The firm used this type of data to trace stolen funds worth $30 million, after Bithumb’s ‘hot wallet’ was compromised in June 2018.
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