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> “All Coinbase Tracer features use data that is fully sourced from online, publicly available data, and do not include any personally identifiable information for anyone, or any proprietary Coinbase user data,” the spokesperson told CoinDesk.

If true, then all they're doing is analysis of data from the public blockchain. That sounds fine to me - the feds could have done it themselves.



The article claims geolocation data, which you aren't going to get from the public blockchain.

Where's that coming from? Maybe other unspecified "public" sources.

It seems suspicious though, like they are getting it from geolocating IP addresses of their users, and correlating those to transactions -- that is not public info at all. But perhaps they get the geolocation info from some other source unrelated to their users?

Personally if my bank was also in the business of spying on financial transactions commercially... I wouldn't feel super secure about my choice of bank.


> Personally if my bank was also in the business of spying on financial transactions commercially... I wouldn't feel super secure about my choice of bank.

Are you aware that your (bank-issued) credit card purchase data is almost certainly sold commercially, linked to a unique identifier?

There's companies that buy mobile advertising data and crosslink it to credit card purchase data to track real-world conversions from online advertising.

I say this to reinforce your suspicions, not to discredit them.


I was not. That oughta be illegal. I wonder if my credit union issued visa card does that too. Or is it visa/mastercard doing it?


There are lots of public sources for the IP address each transaction was first broadcast from as it propagates across the network..

That gives you a clue where the user is located.


That's my main question, if it's all public why would they buy this info from Coinbase?


Repackaging public data is big business. It's often easier to pay someone who has already done the work than reinventing the wheel yourself.


It's public data, but it's time consuming to get the data "ready for analysis". Instead of doing this prep work yourself, you can pay someone else (in this case Coinbase) to do that part.

source: I run a competitor to Tracer (https://luabase.com/)


I'm assuming that somehow coinbase is correlating it to wallets somehow, and tht might be the valuable part


Yeah I guess that's not really just public data anymore.


Cheaper than hiring in house expertees?


Likely, yes. A decent data engineer is probably six figures minimum, whereas data is cheap.


expertise


The only reason to say this would be to deceive the audience. I can see no other reason.


>If true, then all they're doing is analysis of data from the public blockchain. That sounds fine to me - the feds could have done it themselves.

2 points :

1. doing analysis form public sources when you can cheat by looking up private information is a very different beast.

2.parallel construction


the feds could have done it themselves

Let them do it themselves then. Usually “if I don’t do it, someone else will” is an ethically dubious excuse, though it is a good way to make money I suppose




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