Elliptic Refutes Coinbase’s Alleged Sale of User Data to Third Parties
Elliptic, a London-based blockchain analytics firm which provides technology to major United States crypto exchange Coinbase has refuted allegations that it collects and sells clients’ user data to third parties.
Elliptic’s CEO and co-founder James Smith in an official statement published on March 4th, stated that the firm has never “enabled the violation of individuals’ financial privacy,” and that such accusations represent a fundamental misunderstanding of Elliptic’s industry role.
Elliptic is one of key players in the blockchain intelligence sector, providing analytics tools that allow companies, governments and law enforcement agencies to monitor blockchain transactions and track suspected illicit activities, such as money laundering.
Allegations that such players may be circulating their clients’ user data stated when a senior Coinbase executive was prompted to justify the exchange’s now-controversial acquisition of blockchain analytics firm Neutrino.
The executive had claimed that the integration of Neutrino into the Coinbase outfit had been necessary, given that existing external technology providers were allegedly selling Coinbase users’ data to outside sources.
In his statement, Smith said: such insinuations “fundamentally misunderstand the data we analyse, the insight we share with our clients, and the role we play in the industry.”
“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.”