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Coinbase Strikes Another Million Dollar Deal With the U.S. Government

Coinbase Strikes Another Million Dollar Deal With the U.S. Government Coinbase News
  • Coinbase closed a $1.36 million deal with the US Homeland Security.
  • The US Government will use Coinbase Analytics software for classified purposes.
  • A Coinbase representative confirms that the analytics tool handles customer data differently.

Coinbase and the United States Department of Homeland Security have agreed to a million-dollar deal. As per the deal, the U.S government will now use Coinbase’s services to review data from American residents.

Dedicated to cross-border crime and illegal immigration, the United States Department of Homeland Security paid Coinbase $1.36 million in licensing fees for Coinbase Analytics software.

According to the official documents, there is no hint of what kind of data will be reviewed by Coinbase. Due to the covert nature of the ICE’s connection with Coinbase, data from the SAM.gov database assures that Coinbase “is the only vendor who can fairly offer the services requested” by the ICE. In this way, the document implies little information will be shared with the public.

The History of Coinbase and the US Government

In detail, Coinbase has a long history of working with the U.S. government and this would be the most fruitful contract for the company.

Before this, Coinbase agreed to license its Coinbase Analytics tools to the US Secret Service. The Secret Service was able to employ its blockchain forensics capabilities. Thus, the contract would extend until May 2024 and cost $183,750.

Specifically, many crypto investors have questioned the safety and privacy of Coinbase customers following its affiliation with the U.S. Government. As a result, Coinbase reassured users that their customer’s data is handled separately from the analytics tool.

To add on, Coinbase CEO, Brian Armstrong, asserted  in a previous tweet thread that the analytics software remains a positive growth for his company:

Blockchain analytics software is essentially just compiling publicly available data that is already out there on the blockchain … There is an existing market for blockchain analytics software, so we sell it to a handful of folks as well.

Furthermore, the Drug Enforcement Administration (DEA) and the Internal Revenue Service (IRS) were named among the agencies interested in Coinbase’s analytics capabilities.

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Juliet is an ardent reader and a devoted writer who talks behind her keypads. She relishes her thoughts through writing articles, creative writings, and press releases.