CipherTrace Statement on Blockchain Analytics Privacy
In light of recent events regarding the acquisition of blockchain analytics company Neutrino, CipherTrace wants to make our position about privacy and confidentiality clear. CipherTrace has received numerous inquiries from the media and customers regarding our privacy policies.
On February 19, Coinbase acquired a blockchain analytics company, Neutrino. Neutrino was founded by executives from the Milan, Italy based Hacking Team, which developed and distributed spyware to governments around the world. This association triggered a strong reaction among some privacy-minded crypto community members who launched a “#deletecoinbase” movement.
On March 1st, Christine Sandler from Coinbase justified the controversial acquisition saying “it was important for us to migrate away from our current providers because they were selling client data to outside sources.”
As a result of an internal investigation and negative publicity from the #deletecoinbase movement, on March 4, 2019, Coinbase announced personnel changes. According to the company’s CEO, Brian Armstrong, “we did not properly evaluate everything from the perspective of our mission and values as a crypto company. We took some time to dig further into this over the past week, and those who previously worked at Hacking Team will transition out of Coinbase.”
CipherTrace and our executive team are strong advocates for protecting the privacy of individuals and businesses. We develop tools and analytics to protect all users of cryptocurrencies and blockchains, and to make regulatory compliance possible. At CipherTrace, we believe that eliminating terrorist and criminal activities in crypto helps the overall market grow globally, and supports financial independence and liquidity for people and businesses all over the world.
CipherTrace does not, and has never, sold customer data to anyone. CipherTrace provides strong privacy controls and protections for all of our customers, and does not disclose personally identifiable information.
The lesson here is that when it comes to deciding which blockchain analytics providers to trust to know your transactions, look at the team behind it, not only at the technology. At CipherTrace, we believe every company has a responsibility to use data in ethical ways that are respectful of cryptocurrency users’ privacy. What’s more, as the world’s first blockchain analytics team, we have a trusted track record in cybersecurity, crypto and eCrime fighting that spans decades.
David Jevans, Chief Executive Officer