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Allegations of collecting and selling user data from exchanges are denied by Chainanalysis

An official statement has been published by a New York-based blockchain analytics firm Chainanalysis, that clarifies that it is not into collecting or selling personal data of the users when it provides services to cryptocurrency exchanges.  

Chainanalysis being one of the best profile firms in the industry of blockchain intelligence provides technologies like Know Your Transaction tool (KYT) which enables governments, firms and law enforcement agencies to keep an eye on blockchain transactions and keep a track on suspected fraudulent activities, such as terrorist financing or money laundering.

Allegations arose that related companies may be selling their users’ data after Coinbase received immense criticism over their acquisition of Neutrino, which was run by many former employees of Hacking Team. While discussing acquisition and its purpose, a Coinbase executive stated that the previous providers of intelligence tools were selling off their clients’ user information and personal data.

Chainanalysis decided to clarify that involving user data on the platform is not required and storage of any such personal data has never been there. Nevertheless, without being able to store the data, there’s no point they can circulate it.

In the explanation made by the company it has been mentioned that its services often flag transactions with markers for any suspicious or “risky” behaviour. Sometimes these transactions are made by illicit entities i.e. the terrorist organizations or the Dark Web and there are certain details in their algorithm to determine a threat. Data required for having a wallet should always be basic details of the customer and no confidential and identifiable information should be a part of the registering process. Nevertheless, Chainanalysis is more into examining the transactions rather the wallets.

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