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Coinbase providers were selling client data to outside sources, says Sales Director; explains why XRP

Priya

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Coinbase providers were selling client data to outside sources, says Sales Director; explains why XRP
Source: Unsplash


Coinbase, one of the leading cryptocurrency exchanges in the United States, is currently one of the hot topics in the cryptocurrency space. With controversy around the platform’s Neutrino acquisition, and XRP listing, the latest revelations made by the Director of Institutional Sales, Christine Sandler has added more drive to the #DeleteCoinbase movement.

In an exclusive interview with Cheddar, Sandler spoke about the platform’s decision to list XRP, the third largest cryptocurrency, despite speculation over the coin being classified as security in the future. She also revealed the reason behind acquiring Neutrino, a blockchain analytics start-up.

Recently, the news about Coinbase listing XRP created a lot of buzz in the community, considering the platform’s prior concerns over the speculation of the coin being a security. Even though this was one of the most anticipated news to the XRP community, other communities within the cryptocurrency space, however, did not seem gleeful over the announcement. More so, this news was soon followed with allegations of insider trading.

Sandler stated that “there was ground set of interest” in adding the third-largest cryptocurrency to the platform, on the reason behind listing XRP. She said:

“I think there was some speculation that the asset would be classified as a security or not; we’re not securities lawyers. We felt that there was some speculation that the asset would be classified as a security or not. We felt that there were compelling arguments on either side to deem it a security or not.”

This was followed with the Director stating that, despite all the speculation, they added XRP “much to the excitement of client our base“. She further added that the platform has the infrastructure in place if the coin were to be classified as a security in the future.

Christine Sandler said:

“We acquired a broker dealer late this summer, Keystone. That allows us to have that infrastructure, so to the extent that it actually is classified as a security, we will be prepared for that. But in lieu of that we thought we could add it to the platform because at the end of the day, we felt that there were really strong arguments on either side.”

Furthermore, she disclosed the real reason for acquiring Neutrino, the core for the majority of the community joining the #DeleteCoinbase movement. Days after the exchange platform announced the acquisition of the blockchain firm, it was bought to light that the team behind the project, the CEO – Giancarlo Russo, CTO – Alberto Ornaghi, and CRO – Marco Valleri were all formerly part of the Hacking Team. The team used to sell surveillance tools to governments well-known for human rights abuse including and not limited to torturing.

Regarding this, the Sales Director said that Coinbase is “aware of the backgrounds” of some of the people that were involved with the blockchain firm, adding that they are “looking into that”.  She went on to say that the “compelling reason” behind acquiring Neutrino was because they had “some really industry leading best in class technology”.

However, this was followed with the Sandler revealing the real shocking reason as to why they had to acquire the firm. She said that “it was really important” for the exchange to move away from its current providers as:

Our current providers were actually selling our client data to outside sources and it was really compelling for us to kind of get control over that and have proprietary technology that we could leverage on to keep the data safe and to protect our clients.”

Founder of Adamant Capital, Tuur Demeester said on Twitter:

“revelation from @Coinbase. – Was customer privacy breached? (or only aggregate data) – How long have you known? – Did previous tracking providers break contract? (why no lawsuit yet) – How is this an argument explaining acqui-hire of unethical people?”

@BTCismoney, a Twitterati said:

“What a pathetic response from coinbase. “We know we hired criminals, but not to worry, they have good tech.” This is what happens when you hire nocoiner losers to fill your company ranks. So out of touch it’s hilarious. #DeleteCoinbase”

Ate-too-many-humans, a Redditor said:

“Once Binance offers purchases from banks its over for Coinbase #deletecoinbase”

Louis Liu B, another Twitterati said:

“The #deletecoinbase movement is a great warning to any crypto company that doesn’t value customers’ privacy. These are not Facebook people. They are very sensitive to privacy.





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Priya is a full-time member of the reporting team at AMBCrypto. She is a finance major with one year of writing experience. She has not held any value in Bitcoin or other currencies.

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