Coinbase CEO: Ex-Hacking Team members "will transition out of Coinbase"

05 Mar, 2019
by Ryan Boltman
News
Coinbase CEO: Ex-Hacking Team members will transition out of Coinbase

Coinbase have had a tumultuous week with regards to the acquisition of Italian blockchain analysis company Neutrino, who have been labelled as "enemy of the internet" by Reporters without Borders due to the companies role in "passing information with Kaspersky Lab, GroupIB, and other Russian firms closely linked with FSB" according to Krakens report this week. 

Following the lashback from users, Coinbase CEO Brian Armstrong has released a blog post regarding the issues surrounding the ex-Hacking Team members now working with Coinbase since the acquisition.

 Read more: #DeleteCoinbase movement gaining traction as more people close accounts

In the press release, Armstrong states that the mission of Coinbase as a company "is to create an open financial system for the world". Armstrong continues on, explaining that the company is forced to be compliant with all laws and regulations in the financial system, which requires Coinbase to implement a know-your-customer (KYC) and anti-money-laundering (AML) program.

Coinbase also believes blockchain analytics is an important factor in the industry, hence the acquisition of a more robust company with the best technology in this area, enter Neutrino.

 Read more: Kraken CEO on Neutrino analysis: "Neutrino came in last place"

Armstrong admits that "we had a gap in our diligence process, we did not properly evaluate everything from the perspective of our mission and values as a crypto company" when acquiring Neutrino.

Therefore a decision was finalized by the Coinbase team and the Neutrino team, "those who previously worked at Hacking Team (despite the fact that they have no current affiliation with Hacking Team), will transition out of Coinbase. This was not an easy decision, but their prior work does present a conflict with our mission. We are thankful to the Neutrino team for engaging with us on this outcome." Armstrong concluded.

Armstrong admits the company made a bad judgement call and that they will continue to work towards better serving their customers while complying with the law.

Follow Chepicap now on Twitter, YouTubeTelegram and Facebook!

Chepicap is here for you 24/7 to keep you informed on everything crypto. Like what we do? Tip us some Satoshi with the exciting new Lightning Network Tippin.me tool!

 

Read more: How to tip and receive Bitcoin via the Lightning Network with Tippin.me

Read more about: Coinbase

Poll

Is this a good move for Coinbase?

(1 votes)

Add a comment

Check out the latest news

You will be logged out and redirected to the homepage