March 6, 2019, | AtoZ Markets - Since Coinbase announced the purchase of the Italian firm Neutrino on Feb. 19, the former has been in the headlines for a moral scandal that went viral over the internet.
The bought company, Neutrino, had among its team persons who worked for the infamous cyber-spying firm Hacking Team.
Hacking Team developed spyware systems for Kazakhstan, Azerbaijan, Oman, Saudi Arabia, Uzbekistan, Bahrain, Ethiopia, Nigeria, Sudan and many others, according to a reported that was published in 2015.
The regimes of the above-mentioned countries, which are referred to by the United Nation as oppressive, committed numerous human rights violations against the citizens and inhabitants of the respective countries, including allegations of slavery, child soldiers, persecution of dissidents, and war crimes.
With that being said, Coinbase put itself in an extremely embarrassing situation buying Neurtino with its staff without verifying their backgrounds first, the thing that triggered a tornado of criticism and indictment against Coinbase, amid harsh condemnation by its customers especially, who seem to feel insecure now dealing with it.
Coinbase knew that Neutrino has a stigma!
Today, Coinbase says it realized it had made a major mistake when it bought Italian blockchain analytics firm Neutrino, with the reputation its senior management staff have.
Furthermore, Coinbase CEO Brian Armstrong made a public statement, in which he said the company is firing key members of the recently-acquired security firm Neutrino.
“We had a gap in our diligence process. While we looked hard at the technology and security of the Neutrino product, we did not properly evaluate everything from the perspective of our mission and values as a crypto company. We took some time to dig further into this over the past week, and together with the Neutrino team have come to an agreement: those who previously worked at Hacking Team, will transition out of Coinbase.”
Armstrong’s announcement seems to be coming just on time, after Coinbase director of institutional sales Christine Sandler had previously commented on the acquisition of Neutrino, saying that their previous analytics provider had been “selling client data to outside sources,” the thing that scared the clients even more!
The above-mentioned statement came in harmony with a previous statement Coinbase issued in defence of purchasing Neutrino, which said “We are aware that Neutrino’s co-founders previously worked at Hacking Team, which we reviewed as part of our security, technical, and hiring diligence.”, emphasising that “Coinbase does not condone nor will it defend the actions of Hacking Team,”, however, different statements from the same company collided, where the same company also said at a previous time “it was important for Coinbase to bring this function in-house to fully control and protect our customers’ data and Neutrino’s technology was the best we encountered in the space to achieve this goal.”
With Coinbase being one of the biggest crypto exchanges on a global scale, the company’s clients, along with crypto enthusiasts who take the company as an important indicator in the market to follow, and not to mention the company’s competitors too, anticipate with tingled nerves for any update on the company’s status in the market, and how the storm will finally recede.
Should new updates show up soon to flip the scene upside-down, AtoZ Markets is here to cover it all.