Blaming “a gap in [Coinbase’s] diligence process,” CEO Brian Armstrong writes that Coinbase “did not properly evaluate everything from the perspective of our mission and values as a crypto company.”
Coinbase’s Director of Institutional Sales, Christine Sandler, said in an interview last week that, in part, the exchange acquired controversial software firm Neutrino because its prior blockchain analysis providers were selling customer data.
Among other issues, Reporters Without Borders labeled Hacking Team (the team behind Neutrino) as one of five “Enemies of the Internet” in 2013 for its role in humanitarian abuses against journalists.
With its analytical capabilities, Neutrino will help Coinbase add new features and tokens to the platform, while ensuring "compliance with local laws and regulations."
Coinbase plans to use the funding to "accelerate the adoption of cryptocurrencies," as it plans to remain the "entry-point into crypto" for millions of investors.