While Coinbase appears to be facing an upcoming Security and Exchange Commission lawsuit, it is signing new agreements with other government agencies.
The SEC is fighting the Coinbase credit product, and the exchange says it is opposed to litigation regulation. However, all threats seem unstoppable.
In August, the United States Immigration and Customs Service signed a new software development contract with Coinbase. This new deal recently makes it the second for Coinbase. This latest deal is all about Coinbase developing a $ 1.36 million application development SaaS for the US Homeland Security Agency.
The contract between Coinbase and the US Customs Service went into effect on September 16. With this contract, Coinbase will receive $ 455,000 from the agency. In this case, however, the contract can be extended, which can extend over three years. Coinbase expects around 1.36 million US dollars.
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This latest deal with ICE is the second deal Coinbase has signed with the agency. The exchange has received a deal for US $ 30,000 to deliver “computer forensics services” to ICE by August.
Community reaction to the New Deal bagged by Coinbase
After the news, there was a backlash from the cryptocurrency community. According to Alex Gladstein of the Human Rights Foundation, the compensation is low. Its reason is that the scale of Coinbase’s operations and the risk to its reputation for partnering with ICE are too high.
That is, by and large, not a lot of money for Coinbase.
Strange that for such a relatively small sum they would risk so much reputation.
– Alex Gladstein ⚡ (@gladstein) September 18, 2021
Gladstein believes that “the remuneration for an exchange like Coinbase is quite low in the long run. It’s kind of strange that Coinbase could risk their cherished reputation for such a small sum, ”he claimed.
The news about this contract led to criticism of the takeover of the neutrino blockchain analytics startup by Coinbase in 2019.
At the time of the acquisition, there were reports that Neutrino’s supporters were formerly part of the hacking team – a company exposed as spying on journalists for authoritarian regimes.
In addition, Giancarlo Russo, CEO of Neutrino, was the former Hacking Team COO, while Alberto Ornaghi was CTO for over 8 years. The Washington Post reports that this Italian company was linked to the murder of so many Middle East journalists between 2013 and 2018.
Based on these suspicions against the Neutrino employees due to their previous connections to the dubious hacking team, the Coinbase CEO issued a statement in March 2019 that the alleged former hacking team employees will not hold their positions at Coinbase.
Answer to the contract
The contract between Coinbase and ICE received a response from Jesse Powell – the CEO of Kraken. He tweeted that the takeover of Neutrino and this contact with the government is very shocking.
Related reading | The SEC is under-staffed to properly regulate crypto, Chairman Gary Gensler
In July of last year, she also signed another contract with the US secret service to develop the Cyber Fraud Task Force. The task force should investigate the use of crypto for criminal activity.
The crypto-market is down by 7% | Source: Crypto Total Market Cap on TradingView.com
The crypto exchange is currently in a regulatory battle with the SEC (Securities & Exchange Commission).
Featured Image From PCMag, chart from TradingView.com