Bitcoin
BTC$69 432.76

0.06%

Ethereum
ETH$2 492.61

-0.74%

Tether
USDT$1.000007

0.06%

Binance Coin
BNB$568.70

-0.52%

Solana
SOL$166.01

0.18%

USD Coin
USDC$1.000255

0.04%

Coinbase-Neutrino scandal explained


06 Mar 2019

Coinbase-Neutrino scandal explained: The largest US exchange and a spying company


Recently, the largest US-based cryptocurrency exchange, Coinbase, ended up being in the center of a large scandal after acquiring a controversial blockchain analytics company called Neutrino. The scandal had significant consequences for Coinbase, which was quite a respected and influential company up to that point, and it ended up being a PR disaster. But, even now, many remain confused as to what actually happened, what are the consequences, and what can be learned from this situation.

What happened?


As mentioned, Coinbase has recently acquired a blockchain analytics company called Neutrino. However, it was then discovered that the company's founders were also the same people responsible for leading a notorious Italian IT firm called Hacking Team. Hacking Team had quite a bad reputation due to its software allowing authoritarian governments to spy on the citizens, and as a result, a new movement called #DeleteCoinbase erupted on the internet, with Twitter leading it.

This was hardly a surprising reaction, considering that Hacking Team was considered one of the five corporate enemies of the Internet. The company cooperated with the government of multiple countries, including Morocco and Sudan, which allowed these governments to violate freedom of information as well as basic human rights of their citizens.

The company was even involved with the Saudi enforcement unit that was responsible for the murder of a newspaper's correspondent, and it was also found to be helping Ethiopia maintain its repressive regime by monitoring the activities of its citizens. It is easy to see why this company ended up being on the world's (and the internet's) black list, which makes it that much more concerning when Coinbase acquired a company created by the same people who ran Hacking Team.

The backlash was huge, as mentioned, and many have reacted by deleting their Coinbase accounts as a result. It is not known how many people did it at this point, but many also tried and found that they are unable to do so, as they first had to empty their accounts completely.

How did Coinbase respond?


After the situation erupted, Coinbase stated that they were aware of Neutrino's founders' history with Hacking Team. The exchange stated that they do not condone Hacking Team's actions, but that the acquisition of Neutrino was necessary due to the technology that the company has to offer.

According to the company's head of institutional sales, Christine Sandler, it was imperative to acquire Neutrino as previous third-party providers of the same services were caught selling client data. While this is a good thing in a way, users now have to trust Coinbase to handle their data with due care, but the company's actions have violated that trust.

While it is unlikely that Coinbase planned to spy on its users, purchasing a company connected to people known for spying was clearly not the best move. The lack of trust is a big problem in the financial industry, and making shady and controversial moves was already done by the banks, which has caused people to lose trust in them. This did not exactly damage them, but it did lead to the very creation of cryptocurrencies, eventually.

Coinbase, while huge in regards to its user base, is now making similar mistakes. What this, as well as any other exchange, need to do id hold themselves to a higher standard if they are to win back the users' trust. DEXes are on the rise, and the emerging Lightning Networks will soon provide users with alternatives unless the exchanges find a way to set things straight.

Coinbase has already made steps towards doing it by announcing that it will let go everyone who has a connection to Hacking Team.


Related

NordFX Copy Trading: A Comprehensive Guide to Maximizing Profits
NordFX Copy Trading: A Comprehensive Guide to Maximizing Profits
Is a forex hedging strategy effective?
Is a forex hedging strategy effective?
Tips to Choose the Right Second Citizenship Program
Tips to Choose the Right Second Citizenship Program
Can ChatGPT trade better than humans?
Can ChatGPT trade better than humans?
Bitcoin’s continued slide down
Bitcoin’s continued slide down
A new round of crypto market mistrust
A new round of crypto market mistrust
How to Trade with ChatGPT. Tips and Tricks of AI Trading
How to Trade with ChatGPT. Tips and Tricks of AI Trading
Mastering stop loss for indices trading: 5 essential strategies
Mastering stop loss for indices trading: 5 essential strategies
Introducing Exness Team Pro - The voice of the markets
Introducing Exness Team Pro - The voice of the markets

Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap 7d price change
1 Bitcoin (BTC) BTC Bitcoin predictions 74.8% 41 $69 432.76 0.06% 3.55% $1 373 164 306 788 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 85.6% 26 $2 492.61 -0.74% 0.34% $300 136 843 914 ETH 7 days price change
3 Tether (USDT) USDT Tether predictions 90.8% 1 $1.000007 0.06% 0.13% $120 577 172 177 USDT 7 days price change
4 Binance Coin (BNB) BNB Binance Coin predictions 93.6% 4 $568.70 -0.52% -2.46% $81 949 058 825 BNB 7 days price change
5 Solana (SOL) SOL Solana predictions 65.6% 68 $166.01 0.18% -3.09% $78 159 405 859 SOL 7 days price change
6 USD Coin (USDC) USDC USD Coin predictions 91.6% 1 $1.000255 0.04% 0.04% $34 882 388 926 USDC 7 days price change
7 XRP (XRP) XRP XRP predictions 94% 5 $0.509995 -0.25% -0.36% $29 002 721 173 XRP 7 days price change
8 Dogecoin (DOGE) DOGE Dogecoin predictions 58% 84 $0.159086 0.68% 15.76% $23 326 702 688 DOGE 7 days price change
9 TRON (TRX) TRX TRON predictions 93.2% 4 $0.166175 -0.68% 0.84% $14 366 395 280 TRX 7 days price change
10 Toncoin (TON) TON Toncoin predictions 88.4% 10 $4.88 -0.11% -0.80% $12 410 651 179 TON 7 days price change
11 Cardano (ADA) ADA Cardano predictions 94% 7 $0.347833 -2.60% 4.35% $12 172 428 724 ADA 7 days price change
12 SHIBA INU (SHIB) SHIB SHIBA INU predictions 82.4% 31 $0.000017 -0.18% 2.52% $10 277 081 759 SHIB 7 days price change
13 Lido stETH (STETH) STETH Lido stETH predictions 94% 1 $2 941.39 -0.40% -3.32% $10 258 752 564 STETH 7 days price change
14 Wrapped TRON (WTRX) WTRX Wrapped TRON predictions 95.2% 1 $0.116354 -0.46% 0.23% $10 171 995 609 WTRX 7 days price change
15 Wrapped Bitcoin (WBTC) WBTC Wrapped Bitcoin predictions 94% 1 $65 806.83 0.78% -2.68% $10 083 957 608 WBTC 7 days price change

Be the first to receive Cryptocurrency Price Predictions and Forecasts daily

Get cryptocurrency price predictions, forecasts with analysis and news right to your inbox.

© 2015-2024 Crypto-Rating.com

The usage of this website constitutes acceptance of the following legal information. Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website, including information about the cryptocurrencies and bitcoin is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Crypto Rating shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about cryptocurrencies. The entire responsibility for the contents rests with the authors. Reprint of the materials is available only with the permission of the editorial staff.