Cryptocurrency exchange Coinbase Global Inc (NASDAQ: COIN) is reportedly selling the Immigrations and Customs Enforcement (ICE) data that aids in tracing cryptocurrency transactions.
What Happened: According to a report from The Intercept, Coinbase Tracer, a tool that allows users to trace transactions across the blockchain, is currently in use by ICE.
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A document obtained by The Intercept shows that ICE is now able to track transactions made through several different cryptocurrencies, including Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH) and Tether (CRYPTO: USDT).
The tool provides ICE multi-hop analysis of incoming and outgoing funds, transaction demixing, and historical geo-tracking data.
“Coinbase Tracer sources its information from public sources and does not make use of Coinbase user data,” a Coinbase spokesperson told The Intercept.
The report also states that the tool is used by the Homeland Security Investigations division of ICE. Based on the department’s scope of operations, it is likely that Coinbase Tracer is being used in border transnational crime investigations.
Price Action: According to data from Benzinga Pro, Coinbase shares closed 2.79% lower on Wednesday.
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Photo via Nadezda Murmakova on Shutterstock