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Is Coinbase Closing Accounts For Paying Ransoms With Bitcoins?

Even as some comparnies are stockpiling bitcoins so they can quickly pay ransom demands, security firms that try paying those ransoms may face losing their accounts on Coinbase. Slashdot reader Mosquito Bites quotes a report from CoinDesk:
Less than a year ago, Vinny Troia, CEO and principal security consultant of Night Lion Security and a certified white hat hacker, was sent a compliance form by US bitcoin exchange Coinbase, where he had an account. Coinbase wanted to know how Troia was using bitcoin and his account. “I told them I run a security firm. I pay for ransoms and buy documents on the dark web when clients request it,” Troia told CoinDesk. The ransoms Troia helps his clients pay are those stemming from ransomware attacks, which have surged in number over the past few years. Many, like the well-publicized WannaCry attack, are asking for bitcoin.

And the documents? Troia said, “We do breach investigations a lot of times. If a fraudster is saying they’re selling my client’s stolen documents, the only way to make sure they have what they say they have is to buy those documents.” According to Troia, Coinbase “did not like that at all.” Coinbase then asked the IT expert whether he had a letter from the Department of Justice giving him permission to do those things. No, Troia said. Upon further research, Troia has not found that any such permission exists. But, “I have my clients authorizing me to do this,” he said. Coinbase sent Troia back an email explaining that those actions were against the exchange’s rules and shut down his account… “My entire family is blocked from Coinbase,” he said.

Read more of this story at Slashdot.

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