Coinbase Is Testing Clearview's Controversial Facial Recognition Technology

A Coinbase spokesperson said customer data had not been used in its trial of the tech.

AccessTimeIconFeb 28, 2020 at 12:02 p.m. UTC
Updated May 9, 2023 at 3:06 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Coinbase is among more than 2,000 entities from around the world working with Clearview, a controversial facial recognition technology provider.

Internal documents obtained by BuzzFeed revealed New York-based Clearview AI – a startup facing legal threats from Apple and Google as well as calls for greater scrutiny into its practices – had already shared or sold its technology to roughly 2,200 companies and authorities around the world.

  • Navigating Crypto: The Ongoing Struggle between Privacy, Transparency, and Enforcement
    00:55
    Navigating Crypto: The Ongoing Struggle between Privacy, Transparency, and Enforcement
  • Exploring the Intersection Between Privacy, Transparency and Law Enforcement
    05:12
    Exploring the Intersection Between Privacy, Transparency and Law Enforcement
  • ConsenSys to Update MetaMask Crypto Wallet After Privacy Backlash
    06:07
    ConsenSys to Update MetaMask Crypto Wallet After Privacy Backlash
  • Wall Street: Fed Digital Dollar Spells Destruction for Banks
    07:06
    Wall Street: Fed Digital Dollar Spells Destruction for Banks
  • Clearview's software trawls websites and social media platforms to scrape data and match images posted online to persons of interest. Coinbase was among the organizations that had used the software for at least one search, BuzzFeed reported Thursday.

    A Coinbase spokesperson confirmed in the article the exchange had tested Clearview's software regarding its "unique needs around security and compliance," but added customer data had not been used in any of its tests.

    The exchange tested Clearview AI "to see if the service could meaningfully bolster our efforts to protect employees and offices against physical threats and investigate fraud," the spokesperson said. It hasn't yet committed to using the product, they said.

    Coinbase has previously faced criticism about how it deals with user privacy. Last March the exchange had to clarify it it did not sell user data days after its director of institutional sales said a previous analytics provider sold "customer data to outside sources." Coinbase had just acquired an analytics firm linked to governments with human rights abuses.

    Client claims

    Clearview CEO Hoan Ton-That previously claimed his company's software was "strictly for law enforcement" and, in a statement to BuzzFeed, added it was focused primarily on the U.S. and Canada.

    Among Clearview's largest clients are officials from various U.S. regulators. According to the documents, the Department of Homeland Security has registered for more than 280 accounts, with the Secret Service conducting some 5,600 searches.

    Yet, Clearview's clients also come from the world of banking and include Wells Fargo and Bank of America. Although a BoA spokesperson said the bank had never been a Clearview client, documents show it had used the software for more than 1,900 searches.

    Many clients are also based abroad, including law enforcement agencies across Europe and Asia, as well as entities such as the sovereign wealth fund of the United Arab Emirates (UAE). Many had taken advantage of free trials that allow unlimited searches within a 30-day period.

    Clearview attorney Tor Ekeland told BuzzFeed there are "numerous inaccuracies in this illegally obtained information" and declined to provide any further comment.

    In early February, Google, Youtube and Facebook sent Clearview cease and desist orders for scraping images from their platforms. In an interview with CBS News, Ton-That said it was his First Amendment right to collect photos held in the public space.

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.