During this week, several well-known names in the cryptocurrency industry reported that the largest US exchange, Coinbase, requested sensitive data. Days later, about BRL 6 billion worth of bitcoin was withdrawn from the exchange in three transactions that took place simultaneously.
One of these clients was Gavin Andresen, known as Satoshi Nakamoto’s right-hand man after he inherited the development of Bitcoin. With that, Andresen even received a response from Coinbase’s own executive director, Brian Armstrong, after asking for the data requested from him.
” — Hey @coinbase: why do you need three months of bank statements to keep my account open? #violation of privacy”
“- sorry about this”
Sorry about that!
— Brian Armstrong – barmstrong.eth (@brian_armstrong) March 8, 2022
Coinbase exchange’s strange email
Using the Bitcoin developer’s tweet, several names like Andresen took the opportunity to claim that they also received such an email. Some said they thought it was a phishing attempt because such a request was so unusual.
One of them, owner of the Colin Talks Crypto channel, even posted an image with the contents of the email. Highlighting the unusual parts of the order placed by the largest US brokerage.
- “Please provide additional details about your current or previous occupation/a business you own/involve. Please also provide supporting documentation, e.g. a salary issued in the last 3 months or a letter from your human resources department confirming your employment.
- Please confirm the source of the funds deposited into your Coinbase account and provide us with supporting documentation e.g. proof of payment, statements from other exchanges, loan agreement, credit card statements, screenshot of transactions from non-hosted wallet).
- Confirm the primary source(s) from which your total assets were generated and provide us with supporting documentation, for example: proof of payment; brokerage/investment statement; house sale document, inventory or transfer document, copy of the will, succession, etc.). If your source of wealth came from investing in cryptocurrencies or other investments, you will need to provide additional supporting documentation showing the initial investments that led to your wealth.
- Please provide us the 3 month bank statements issued in the last 4 months.
Although the broker’s founder and CEO, Brian Armstrong, appeared to respond to Andresen, the reason for such a request was not explained. However, it reminds us of the story of how the US found the pair responsible for one of the biggest heists in cryptocurrency history.
Another reason could be related to sanctions against Russians, who have already blocked more than 25,000 addresses linked to them.
Withdrawal of BRL 6 billion from the brokerage
Coincidence or not, at the beginning of this Friday (11), the exchange withdrew 29,609 BTC (R$5.9 billion) from its main wallet. It could be withdrawals from a client who is not happy with the broker’s new policies.
After that, the three portfolios above separated these funds into several other addresses, each holding about 98 BTC (R$19.5 million), making such trades even more interesting.
Source: Live Coins
John Cameron is a journalist at The Nation View specializing in world news and current events, particularly in international politics and diplomacy. With expertise in international relations, he covers a range of topics including conflicts, politics and economic trends.
