Cryptobirge Coinbase loses users due to the purchase of a startup by the creators of spyware software from Hacking Team

One of the largest cryptocurrency exchanges Coinbase was involved in the scandal after the purchase of the Italian IT company Neutrino, writes Bloomberg. The company is engaged in the creation of solutions in the field of blockchain analytics, but its leaders in the past have been associated with the Hacking Team cyber group. This organization developed selling cyber weapons and spyware.

Details of the scandal

Coinbase announced the purchase of Neutrino on February 19th and soon faced criticism from many users and investors. A number of Neutrino executives, including CEO Giancarlo Rousseau, Principal Investigator Marco Valleri and Technical Director Alberto Ornaga, were previously members of the Hacking Team cyber group.
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Members of the Hacking Team developed and sold spyware to governments of such countries as Azerbaijan, Kazakhstan, Oman, Saudi Arabia, and Sudan. Cybergroup services were used by various US law enforcement agencies. In 2013, the organization Reporters Without Borders included the Hacking Team among the "five corporate enemies of the Internet."

Motherboard journalists found out that Hacking Team products allow governments and law enforcement agencies to secretly install implants on remote computers in order to gain unauthorized access to information on the device. The cybergroup software could be used to steal private emails, record Skype calls and monitor the victim via a computer's webcam.

Critics of the deal between Coinbase and Neutrino launched the #DeleteCoinbase hashtag on Twitter. One of the goals of opponents of the merger is to emphasize the role of former members of the Hacking Team in organizing illegal surveillance and pressure on journalists and opponents of authoritarian regimes.

Reaction

In the field of cryptocurrency information security issues are of great importance to users. Cyber ​​attacks and incidents occur regularly, causing investors to lose money. According to statistics, in the first nine months of last year, $ 1 billion worth of cryptocurrency was stolen.

Active criticism from the users forced Coinbase to respond. Co-founder of cryptobirge, Brian Armstrong, acknowledged the shortcomings of the startup evaluation process before purchasing. In a blog post, he wrote : "We did not appreciate everything in terms of our mission and the values ​​of the company."

As a result, Coinbase conducted a more in-depth analysis, as a result of which the former members of the Hacking Team will leave Coinbase.

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