#DeleteCoinbase
Outrage sweeps across Twitter.
The fundamental problems facing online exchanges are structural.
When failure or fraud occurs, it’s made possible by design. These exchanges aggregate their users’ keys and details in order to provide an expedient solution. This centralization of money and data makes exploitation possible.
But in last week’s case with Coinbase, the problem goes beyond structure, and demonstrates a tragic moral failure.
Their recent acquisition of Neutrino — whose key leadership includes ‘digital arms dealers’ who formerly created and sold spyware to human rights gulags Saudi Arabia, Russia, Turkey and more — has shaken their userbase.
One rationale given by Coinbase is utilitarian, referring to Neutrino’s powerful transaction tracking tools.
However, Coinbase also revealed the switch was sparked by their previous provider having sold off Coinbase customers’ data.
Customers in the crypto world are extraordinarily diligent and measured when preserving their digital freedom and personal privacy.
While Coinbase has certainly failed their custodial duties, it was never possible for them to achieve a standard of impenetrability that their customers deserve.
Could Coinbase have done better in picking their former and current partners?
Yes.
But an online exchange’s need to invasively track, trace, and store their users’ private data still preserves an avoidable risk of exploitation.
Avoid the risk.
Deal in person.
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Cryptocurrencies start the week on a low note, with 9 of the top ten according to Coinmarketcap.com showing significant dips as indecisiveness, wavering sentiment, and regulatory pressure continues to weigh on the space. Though no single action caused Monday morning’s dramatic drop, many assets appear to have been oversold after posting sharp gains in February, including EOS and Litecoin.
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BTC 6 Month Chart
(Coindesk)
Today — 4860.25 CAD
One week ago — 4992.88 CAD
One month ago — 4472.84 CAD
Six months ago — 9649.34 CAD
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Facebook’s crypto grows closer. Though Facebook has revealed no details about its cryptocurrency plans, major news organizations including Bloomberg and New York Times have speculated that the social media giant will be releasing a new cryptocurrency. The crypto in question will likely allow WhatsApp users to easily send money to one another easily using blockchain technology. “Like many other companies, Facebook is exploring ways to leverage the power of blockchain technology,” a source close to the project explained. “This new small team is exploring many different applications. We don’t have anything further to share.”
Canadian investigators find empty wallets in QuadrigaCX case.Following the unexpected death of CEO Gerald Cotten, Canada’s QuadrigaCX has faced increased scrutiny, with over $190 million in assets still missing. Though investigators have located a small portion of the missing crypto, they have turned up some empty cold wallets and a series of unexplainable transactions. Taking the lead on the case, court-appointed monitor Ernst & Young has noted that five wallets associated with Cotton had received absolutely no deposits since April. Ernst & Young also attempted to reach out to other exchanges where Cotton may have been holding accounts, with varied results. Only one of the confirmed it was holding a minimal amount of cryptocurrency on behalf of the insolvent company.
Crypto businesses face trouble in Malta. While Malta has consistently remained on the forefront of the crypto and blockchain regulatory movement, companies attempting to relocate in order to enjoy some of the country’s incentives for the business are having difficulties opening bank accounts on the small island. Silvio Schembri, Parliamentary Secretary for Financial Services, has noted that though sometimes banks prefer ‘blockchain’ businesses over cryptocurrency businesses, many financial institutions do not make a distinction between the two. Maltese authorities are working on new ways to help banks understand the risk and encourage greater cooperation.
