With the recent happenings around the US-based cryptocurrency exchange, Coinbase, users have been advised to take their cryptocurrencies out of the exchange.
The latest call was made by Crypto Bitlord, an altcoin trader on Saturday, July 2. According to him, Coinbase is dead due to the recent controversies surrounding an agreement that the exchange signed with the Department of Homeland Security.
In the tweet, the cryptocurrency trader said,
“RIP coinbase. Get your funds off and delete this scam app ASAP”
Deals That May Be Exposing User Data
Some of the attached screenshots are news snippets from different media that say that the exchange is selling users’ geolocation data to ICE. This news is from Fortune Magazine. Another, a July 15 issue of Coingeek says that the exchange secured a deal to work with the US Secret Service. This was a 4-year deal. And yet another news snippet from Decryptco says that a $1.36 million with the US Homeland Security implies that dealing with the exchange may expose user privacy.
RIP coinbase ☠️
Get your funds off and delete this scam app ASAP pic.twitter.com/RDytQ2bb7v
— Crypto Bitlord (@crypto_bitlord7) July 2, 2022
Coinbase Responds To User Concerns
In their response via a June 30, update, Coinbase denied that it sells user data to security agencies in the United States and elsewhere. It added that its tracer tools are specifically meant to help trace crimes and comply with necessary laws.
The exchange release says:
“We want to make this incredibly clear: Coinbase does not sell proprietary customer data. Our first concern has been and always will be providing the safest and most secure crypto experience to our users.”
It added that the company’s tracer uses publicly available sources for information and not privileged private details of its customers.
Coinbase Customers React
In their comment regarding the relationship between Coinbase and security agencies in the US, Max Sadik @maximsadik, a customer at the exchange said that if it is a competition for the most hated public company, Coinbase would win hands-down.
A User, Stackoshi Nakamoto said,
“Just find it odd that having used your services for years that all of a sudden I need to “confirm my info” or my account will be restricted. 5 years and this is the first time I’ve seen a “periodic” request like that.”
Financierpro the author of Time is Money said,
“I’m never buying any more crypto on your platform. You probably allowing the government to track us with your new ICE deal”
While AJ @AJ79482722
“Key word here is “proprietary” and then they’ll define it to their liking to make it seem like what their doing isn’t bad”
Coinbase recently laid off more than 1000 staff, mainly from its US workforce. The company is now seeking growth via its overseas operations.