Key Takeaways
- CEO argued that publicly available blockchains were inherently flawed when it came to protecting privacy and emphasized that Arkham would exercise control over the data
- Arkham Intelligence is facing an accusation for inadvertently leaking its own customers’ private information
Arkham Intelligence, a prominent crypto data firm, has recently found itself in the midst of a media firestorm due to a series of controversial events. The company’s announcement of a new service aimed at revealing the identities of digital wallet owners has sparked outrage among privacy-focused cryptocurrency advocates.
Adding fuel to the fire, it was discovered that Arkham had been inadvertently leaking its own customers’ private information, further raising concerns about the company’s approach to user privacy just as it was launching a large-scale initiative to unmask crypto wallet owners.
The platform, launched on Binance Launchpad as a token sale, was swiftly criticized on social media, with critics dubbing it a “snitch-to-earn” system. In an attempt to salvage the situation, Arkham CEO Miguel Morel took to Twitter Spaces on July 11th to address the growing controversy. Morel defended the platform’s purpose, stating that it aimed to uncover scammers and hackers behind crypto exploits.
He argued that publicly available blockchains were inherently flawed when it came to maintaining privacy and emphasized that Arkham would exercise control over the data, preventing anyone from posting sensitive information indiscriminately.
Morel dismissed the notion of a completely open market and asserted that Arkham would follow a strict vetting process to determine which data would be accessible on the platform.
“The whole point is that when situations like that happen, there’s then an incentive from the community that’s actually getting exploited in these situations to actually then go out and put in real work and real hours to try to figure out who’s behind the fraud in order for them to be potentially reported to the authorities,” Morel noted
While Morel attempted to address concerns, his responses failed to reassure certain panelists. Renowned crypto trader Scott Melker voiced his apprehension during a Crypto Town Hall, labeling the business model as effectively “incentivizing people to rat on others.” Melker cautioned against the potential for abuse, highlighting the ease with which false stories could be constructed on the blockchain, potentially targeting innocent individuals.
Melker strongly disagreed with Morel’s justifications, noting that many people were unaware that their actions on the blockchain could leave behind traces that could be exploited by amateur sleuths to weave false narratives against them.
The timing of the controversy could not have been worse for Arkham, as it further undermined their credibility right as they were attempting to position themselves as a solution to the industry’s reputation issues.
