Coinbase Inks a $1.36 Million Deal with the US Government

Coinbase has worked out a deal with the U.S. Homeland Security, granting the government ability to utilize the crypto’s services for the purpose of examining American citizens’ data.

Based on the official documents, the Immigration and Customs Enforcement (ICE) made a payment of $1.36 million for licensing costs to Coinbase Analytics software.

This is one of the most intriguing deals for Coinbase, which has a reputation of teaming up with the U.S. government in different projects.

The official documents have not revealed the specific details or nature of information that Coinbase will be analyzing or sharing with the government.

But according to the data collected by SAM.gov, there is no other vendor- other than Coinbase- that’s capable of offering the services needed by the ICE.

As mentioned earlier, this is not the first time that Coinbase is getting into bed with the U.S. government. In the past, the exchange has struck a deal with the U.S. Secret Service that saw the licensing of its Analytics tools.

This particular deal, which was estimated at $183,750, extends up to May 2024, and it gives the Secret Service free will to utilize the exchange’s forensic tools.

Coinbase has come under fire for partnering up with the U.S. government several times in the past. In spite of this, its CEO has made it clear that he does not have any remorse for the company’s actions.

Brian Armstrong, Coinbase CEO, reassured customers through a tweet saying that the firm would only send information that’s already available for viewing on the blockchain.

Following the array of negative comments that were posted in response to his tweet, Armstrong decided to delete the post.

One thing that Coinbase has clarified is the fact clientele data is dealt with separately from the analytics tool. As such, there’s no reason to be concerned.

Leave a Reply

Your email address will not be published. Required fields are marked *