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Tuesday, November 29, 2022

Coinbase Has Signed Contract Worth $1.36 Million With Homeland Security

Coinbase, one of the leading cryptocurrency exchanges in the country, has already secured a contract of around $1.36 million. This contract would be to develop tech for the Department of Homeland Security. Under this agreement, the cryptocurrency exchange will be delivering application development software as a service for ICE- the US Immigration and Customs Enforcement Division. 

Coinbase contract Sparks Debate

The contract came into play on the 16th of September and will see Coinbase receiving around $455,000 from the Homeland Security Department. Also, the contract has a possibility of being extended to three more years in total, which would see the cryptocurrency exchange receiving a sum total of $1.36 million. This is the second partnership that has been lined between ICE and the cryptocurrency exchange, with the exchange securing a contract worth $30,000 early in August to provide computer forensics services to the agency. 

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Coinbase’s contract has reportedly brought about major backlash in the crypto community, with Alex Gladstein, the chief strategy officer of the Human Rights Foundation, stating that the compensation has been relatively low given the scale of the operations of this cryptocurrency exchange along with the reputation risk which was posted to the exchange through the partnership. Most believe the sum offered isn’t a lot, and it is quite strange that the leading cryptocurrency exchange would risk so much reputationally over such a small sum. 

The news has also brought forth the 2019 criticisms of Coinbase and its acquisition of Neutrino, a blockchain analytics startup. During the year it was acquired, it was stated that the staff behind Neutrino had been a part of the Hacking Team. This company has been revealed to have helped several dictatorial regimes keep tabs on their journalists.

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