Bitcoin-backed startup Coinbase has poached executives from Facebook Inc (NASDAQ:FB) and Amazon.com, Inc. (NASDAQ:AMZN). Facebook Director of Security Incident Response, Ryan McGeehan announced on Facebook that he is quitting the social networker to join Coinbase to work in a security-related capacity. According to the posting, Ryan will be working to “build [Coinbase’s] security program.”
McGeehan also tweeted about his new role, saying “Yup, I’m joining @coinbase in April. If you’re working on BTC security anywhere, reach out so we can share ideas.”
Facebook, Amazon lost employees
McGeehan will not be present at F8, which is scheduled later this month. He has worked for a while for the Federal Reserve Bank of Chicago, which gives him some experience in the banking industry. In his post, the security man thanks two of Facebook Inc (NASDAQ:FB)’s co-founders, Zuckerberg, and Moskovitz.
Apart from Facebook Inc (NASDAQ:FB), Amazon also lost one of its senior directors, Todd Edebohls, who will also join Coinbase as the vice president of business development.
Apart from high profile talent, Coinbase has also attracted some big names in the venture capital industry including Y Combinator, which recently raised $25 million for the startup in Series B funding. TechCrunch referred the funding as “the largest funding to date for a company focused on Bitcoin digital currency.”
Is Coinbase safe?
Coinbase came into existence less than two years ago, in 2012. On Feb. 27, the company breached the 1 million Bitcoin wallet download mark. Coinbase’s biggest rival is Blockchain.
Bitcoin’s future has been surrounded by doubt and uncertainty following the bankruptcy filed by Mt. Gox, which is the world’s former leading Bitcoin exchange. Mt. Gox posted a loss of roughly $400 million. The whole saga has again raised the question on the integrity of companies based on the crypto-currency.
So, Coinbase, which is one of leading startups backed by Bitcoin, could be feeling the heat to prove to critics that it can sustain its operations. However, if the investors and consumers feel Bitcoin is unsafe then the future of Coinbase could also be on shaky ground.
Fred Ehrsam, co-founder of Coinbase, said that the company is using cold storage system with multiple distributed keys. “The industry is continuing to evolve,” he told TechCrunch. “We’re attracting very, very top talent from prior rocketships that were successful.”