Major cryptocurrency exchange signs $1.4 million deal to help ICE track crypto trades

pcgamer.com:

One of the big appeals of cryptocurrency is anonymity: Unlike actual money and conventional financial transactions, crypto is very difficult to track. Not everyone thinks that's a good thing, of course. In 2018, for instance, Bill Gates(opens in new tab) said the anonymous nature of crypto was making it more difficult for government agencies to combat criminal activity such as money laundering, tax evasion, and terror funding. The values of Bitcoin and Ethereum also took a big hit in 2021 when the EU proposed new regulations on cryptocurrencies that included the prohibition of anonymous crypto wallets(opens in new tab).

According to The Intercept(opens in new tab), however, Coinbase—the largest cryptocurrency exchange in North America—has made a deal with US Immigration and Customs Enforcement, better known as ICE, that grants the government agency access to a suite of tools used to track and identify crypto users. The report says the arrangement began with the sale of a single software license in August 2021 for $29,000, and then expanded into a second contract worth $1.36 million the following month.

A copy of the contract(opens in new tab) obtained by non-profit organization Tech Inquiry(opens in new tab) indicates that ICE has licensed access to multiple analytical and tracking tools for 12 currencies, including Bitcoin and Ethereum, as well as relevant training sessions. Quoted services include:

It sounds comprehensive to say the least, and according to The Intercept, a Freedom of Information Act (FOIA) request indicated that ICE was not required to sign an EULA that put limits on what it can do with the tools. A Coinbase rep also declined to say whether any limits on analytics usage had been imposed.

The rep did