Major crypto exchange Coinbase is looking to take in as much as $250,000 from the newest deals with two government agencies in the US, the Internal Revenue Service (IRS), and the Drug Enforcement Administration (DEA).
Initial reports revealed that both agencies are eyeing to buy the license of Coinbase’s Blockchain Analytics software, or better known in the industry as Coinbase Analytics (CA). The goal is to use the cloud-based software in domestic and international cryptocurrency investigations, particularly in identity attribution.
According to some public documents, an agreement had already been settled between Coinbase and DEA. The contract, which was dated April 3, 2020, would last until April 2 next year. Notably, the agency had written that CA carries most of the functions they need in their job and is currently the most affordable tool in the market.
Meanwhile, the IRS would reportedly use the Blockchain Analytics software in its cybercrime investigations, particularly in tracking down Bitcoin (BTC) and other crypto-related cases. Notably, it is critical to avoid false positives, which are persistent issues during target identification. Same as the DEA, Coinbase’s contract with IRS would last for a year from the date of the award.
Coinbase’s recent moves show that even after being scarred with controversies related to the purchase of Blockchain Intelligence Company Neutrino, it is still ready to take on the competition. The crypto exchange joins the long list of Blockchain intelligence companies vying to establish a secure connection to the US government, alongside Elliptic, Chainalysis, and CipherTrace.