The Diary Game 09/03/2022 - Coinbase joins blockade against Russia: 25,000 cryptocurrency wallets blocked.

Coinbase Global Inc., one of the largest cryptocurrency platforms in the world, announces that it has blocked more than 25,000 addresses highlighted by internal monitoring as being potentially attributed to Russian entities engaged in illicit activities.

Although it represents only 0.2% of Coinbase customers, or 11.4 million transactions per month, the blockade could be significant in terms of the amounts that would have been exchanged. According to Paul Grewal, head of Coinbase operations, the largest cryptocurrency exchange in the US has used sophisticated blockchain analysis technologies to identify and block the intermediation on the platform of transactions that fall under the prohibitions requested against Russia:

Today, Coinbase is blocking more than 25,000 addresses of Russian individuals or entities that we believe are involved in illicit activities, many of which we have identified through our own proactive investigations. We forwarded this information to the government to further support the implementation of sanctions.

However, due to the decentralized, unregulated and uncontrollable nature of a particular government of the Bitcoin network and cryptocurrencies in general, actions to block transactions on a particular cryptocurrency exchange only direct the holders of those wallets to rival platforms that do not apply these restrictions.

The recipe has been used for years not only by private individuals who are trying to lose track of the profits obtained through activities that are not exactly legal, but also by actors in the field of organized crime, such as drug cartels, mafia organizations. They are joined by state actors such as Russia and North Korea, which are trying to avoid international sanctions.

Major cryptocurrency exchanges, including Coinbase and Binance, have said they will comply with government requests to restrict sanctions, but will not completely ban all transactions requested from Russian customers.

Brian Armstrong, Coinbase's chief executive, explains the approach chosen by the need to offer the people of Russia a lifeline, now that the national currency has collapsed.

Not your keys, not your coins! Another demonstration - if needed - keeping your coins in exchanges is not the best choice you can make.