Coinbase responds to criticism surrounding the acquisition of Neutrino

27 Feb, 2019
News
Coinbase responds to criticism surrounding the acquisition of Neutrino

Coinbase recently spoke out about their latest acquisition of Italian company Neutrino, following criticism from the public. So what is the big deal?

It turns out, the executive team of Neutrino, used to work for a company called Hacking Team, a company the Block reports as a controversial intelligence firm designated by Reporters Without Borders as an “Enemy of the Internet”

Read More: Coinbase announces new acquisition, wants to become 'Google of crypto'

Neutrino executives reportedly work for the Hacking Team and sold spyware tools to government agencies across the globe. The major concern for users of Coinbase became evident when they realized that a cryptocurrency exchange has acquired a team that previously focused on "consistently facilitating human rights abuses"

Coinbase has since come out and spoken about the recent acquisition of Neutrino. In a statement to the Block, Coinbase stated that they are “aware that Neutrinos co-founders previously worked at Hacking Team, which we reviewed as part of our security, technical, and hiring diligence,” adding that “Coinbase does not condone nor will it defend the actions of Hacking Team,” but “it was important for Coinbase to bring this function in-house to fully control and protect our customers’ data and Neutrino’s technology was the best we encountered in the space to achieve this goal.”

Coinbase goes on to explain that significant effort is required to completely understand the risk across blockchains and that Coinbase prides itself in its long track record of being compliant and regulated, with commitment focused on protecting customers right to privacy.

Coinbase continues to defend its stance as a security measure and also reiterates that protection and customer rights are the companies most important concern.

 Read More: SoFi is partnering with Coinbase to offer cryptocurrency investing

While the move looks like a simple attempt by Coinbase to bolster their internal security and potential lack thereof, it is no doubt a concern for Coinbase users that an "enemy of the internet" is now operating with one of the world's top cryptocurrency exchanges.

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