Court's Decision: Coinbase Is No Different From Traditional Banking Structures
A court in the United States has aligned Coinbase with traditional banks. The reason was the site creators` collaboration with the FBI.
Case against Gratkowski
Coinbase management has decided to provide confidential information about its user, Richard Gratkovsky. He was found guilty of acquiring forbidden pornographic content with a juvenile for BTC.
Coinbase & FBI Collaboration
Employees of the Federal Bureau of Investigation found that the accused bought forbidden materials for bitcoins in 2016-2017. They set his wallet numbers, contacted Coinbase, and asked for information about him. The management of the site did not mind providing the data to the FBI even without a court order.
Gratkowski was found guilty and sentenced to 5 years and 10 months in jail.
The defendant did not agree with the court decision and appealed. He referred to the Fourth Amendment. Gratkowski believes that BTC transactions should be protected as much as the location of mobile phones. But the court did not agree, besides, recognized Coinbase as the same financial institution as traditional banks.