Coinbase’s Neutrino Partner, Blockchain Forensic Analysis Firm Elliptic, Denies User Data Distribution
There had been rumors recently that claimed that Blockchain and Forensic analysis company Elliptic had illicitly collected user data and were distributing it for profit. The firm issued a statement that denies these rumors.
— James Smith (@DocJamesSmith) March 4, 2019
Jason Smith, the CEO of the company said:
“I have been disappointed to see reporting in the past few days which has incorrectly implied that Elliptic is distributing personal information for financial gain. Such comments fundamentally misunderstand the data we analyze, the insight we share with our clients, and the role we play in the industry.”
He went on to say that Elliptic has no access to end users’ personally identifiable information. Their exchange clients, including Coinbase, do not provide us with any personally identifiable information about their users. They use Elliptic’s solutions to screen specific transactions for risk. The firm does not require or request any transaction data that they can link to individuals, and do not have any other client information such as names, addresses or social security numbers.
In the FAQ provided, the firm clarified their user policy. They go on to say that they never request or require any end-user data from their clients.
“We hold no KYC data whatsoever. We do not ever want or need to know who the private individual is behind any transactions being analyzed by an exchange. This information is not relevant to our ability to screen transactions for suspicious activity. As a result, we do not receive or hold any information about the end users of our clients. In fact, when on-boarding new clients, we explicitly inform our users that we do not want or require any personal data on their end users in order to screen transactions for anti-money laundering purposes.”
Chainalysis also faced similar accusation before and their Co-Founder and COO, Jonathan Levin issued a statement to The Block Crypto saying:
“It is very important that we clarify that we do not collect personal identification information from our exchange customers. we believe that by monitoring crypto transaction for noncompliant behavior on exchanges that we can build trust that will allow it to be a medium of exchange around the world.”