Elliptic Said It Didn't Sell Coinbase Customers Data

As reported by CEO Dr. James Smith, Elliptic never had access to personal data of users, due to the fact exchanges never provided company with it
05 March 2019   608

The Elliptic company, which provides analytical services in the blockchain field, commented on a recent statement by Coinbase, refuting the information that it was Elliptic who was collecting and disseminating data from clients of the American crypto exchange.

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 analyse, the insight we share with our clients, and the role we play in the industry.
 

Dr. James Smith

Co-Founder & CEO, Eliptic

According to Smith, Elliptic never had access to personal data of users, primarily due to the fact that its clients in the face of crypto-exchanges do not provide it with it.

The firm is a developer of solutions for “transaction screening” and helps confirm the source or purpose of the funds, but does not require you to transfer data such as user names or addresses to it. In the process of analysis, it relies on transaction hashes, wallet deposit/withdrawal, and cash flow directions. If it is necessary to study the behavior of a particular client, the company creates an identifier that is not associated with his personal data.

Elliptic’s mission is to develop compliance and fraud solutions that enable businesses to fight financial crime in crypto. As a result, any solutions we develop or data that we analyse are only to further this mission.
 

Dr. James Smith

Co-Founder & CEO, Eliptic

In a conversation with The Block, Elliptic confirmed that she is still a Coinbase partner. According to analyst Mike Dudas on his Twitter, Coalbase no longer works with Chainalysis, a company providing similar services. Chainalysis Operations Director Jonathan Levin, however, said: “It is very important for us to clarify that we do not collect personally identifiable information from the customers of the exchanges. We believe that we can provide confidence in cryptocurrency exchanges by checking their transactions for signs of violations. ” 

Coinbase to Appear in San Francisco District Court

Exchange representatives must appear in court due to issues related to BCH trading launch in 2017
07 August 2019   134

San Francisco District Court judge Vince Chhabria ruled that the latter showed negligence and “clear incompetence generated by haste” when it started trading in Bitcoin Cash (BCH) on Coinbase. Now Coinbase, apparently, will be forced to stand trial, Bloomberg reports.

So, at the end of 2017, the exchange opened BCH trading, but was forced to suspend operations after 2 minutes due to high volatility and suspicious price increases - the coin began to grow rapidly several hours before the announcement of Coinbase.

Then the company was accused of insider trading, later crypto enthusiasts even began to find confirmation of this.

According to the judge, the users who bought VSN at inflated prices were primarily affected. He noted that the suspension of trading was too hasty and disrupted the normal functioning of the market.

BCH buyers claim that Coinbase could have announced a bid in advance to prevent a price spike, but it did not. The judge agreed with this opinion and noted that shortly before the launch of BCH trading on Coinbase, the Chicago Mercantile Exchange opened trading in bitcoin futures, which could become a factor of too much market participants' recovery.

According to the publication, Coinbase has not yet commented on the court decision.

Recall that in March 2018, a class action lawsuit was filed against the company, in which Coinbase was accused of “artificially overpricing” Bitcoin Cash through trading based on insider data.