Kraken CEO Disqualifies Coinbase’s Neutrino Acquisition on the Grounds of Risk & Culture Fit
Coinbase has been in the spotlight the entire week, all thanks to adding support for XRP and its controversial acquisition of Neutrino.
Crypto community bashed Coinbase for this acquisition while calling out for #DeleteCoinbase. Now, Jesse Powell, the CEO of cryptocurrency exchange Kraken has come forward to share what he and his compliance team think of the acquisition.
“I asked our Compliance team what they thought of Neutrino. Fortunately, they'd just completed an evaluation. Neutrino came in last place on product (out of the 5) but was disqualified anyway due to the risks. However, other factors are important in M&A: cost, culture fit.”
According to analysis shared by Powell, the possible risks associated with Neutrino involves,
“Neutrino’s founder is the founder of HackingTeam, an Italian cybersecurity firm that is known to pass information with Kaspersky Lab, GroupIB, and other Russian firms closely linked with FSB.”
When it comes to its products, it has been specified that the charting capability of the user interface is rudimentary and the product doesn’t involve any passive monitoring features such as alerts. Moreover, the product can generate reports based on currency transaction flags that exceed set risk thresholds. The short term strategy of the company is to offer support for as many blockchains as possible, instead of enhancing current product functionality while the breadth of supported blockchains is considered a positive aspect.
Things Keep On Getting Scarier With Coinbase-Neutrino
Recently, in an interview with Cheddar, Christine Sandler, the head of sales at Coinbase said, that they're looking into the backgrounds of the people associated with Neutrino as the acquisition was made for
“industry leading and best-in-class technology.”
The Coinbase-Neutrino story keeps getting scarier. Apparently, user data has already been leaked and Coinbase never disclosed it to the public. That is insane https://t.co/5xGAjYy0Be
— Hasu (@hasufl) March 3, 2019
“It was important for us to migrate away from our current providers,” Sandler said on why Coinbase bought Neutrino. “They were selling client data to outside sources and it was compelling for us to get control over that and have proprietary technology that we could leverage to keep the data safe and protect our clients.”
The Coinbase and Neutrino story is revealing more secrets along the way with things keep on getting worse. Now people want more answers and further calls out the exchange for being reported about the leaked data.