Bitcoin BTC , ethereum and other major cryptocurrencies have suffered an almighty crash in recent months—sparking a serious Coinbase warning.
The bitcoin price has crashed under $20,000 per bitcoin while ethereum has dropped to around $1,000 per ether—each losing more than 70% from their all-time highs.
Now, as some bullish investors speculate the worst of the crypto price crash could have already happened, documents have revealed major crypto exchange Coinbase COIN could be selling user data to the U.S. Immigrations and Customs Enforcement (ICE) agency.
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Coinbase has struggled to maintain revenue and users amid the bitcoin, ethereum and crypto price ... [+]
Getty ImagesCoinbase's analytics program, Coinbase Tracer, provides ICE with cryptocurrency user data, including "historical geo-tracking data" and transaction history, according to a document obtained by watchdog group Tech Inquiry and first reported by The Intercept. A Coinbase representative wasn't able to elaborate on the source of the "historical geo-tracking data."
The ICE contract is part of a deal Coinbase signed last summer with U.S. government agencies and the document suggests Coinbase Tracer can track data related to bitcoin, ethereum, the stablecoin tether and other cryptocurrencies, as well as all tokens on the ethereum network—known as ERC-20 tokens.
The Coinbase Tracer software, which analyses millions of blockchain-based transactions, can also perform "transaction demixing, and "shielded transaction analysis." Coinbase markets the software as a way to "investigate illicit activities including money laundering and terrorist financing" and suggests Tracer can "link activities to real-world entities."
However, Coinbase denied that the information provided by the analytics software is the exchange’s customer data.
"We want to make this incredibly clear: Coinbase does not sell proprietary customer data," the crypto exchange posted to Twitter.
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The bitcoin price has dropped under the psychological $20,000 per bitcoin level, dragging down ... [+]
Forbes Digital Assets"Our first concern has been and always will be providing the safest and most secure crypto experience to our users. Our Coinbase Tracer tools are designed to support compliance and help investigate financial crimes like money laundering and terrorist financing. Coinbase Tracer sources its information from public sources and does not make use of Coinbase user data. Ever."
Coinbase stock has crashed dramatically over the last year as the company battles falling bitcoin, ethereum and cryptocurrency prices, regulatory headwinds and the collapse of major coins.
Last month, analysts at Wall Street giant Goldman Sachs downgraded Coinbase to "sell"—warning the company could be on track for "further degradation" even after a devastating 80% price crash.
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