Coinbase, a publicly traded cryptocurrency trading exchange based in the United States, agreed to pay a $50 million fine after financial regulators found that it let customers open accounts without conducting sufficient background checks, in violation of anti-money-laundering laws. The settlement with the New York State Department of Financial Services, announced Wednesday, will also require Coinbase to invest $50 million to bolster its compliance program, which is supposed to prevent drug traffickers, sellers of child pornography and other potential lawbreakers from opening accounts with the exchange. It’s the latest hit to the once-highflying global cryptocurrency trading business. Several cryptocurrency firms have filed for bankruptcy over the past year — most notably FTX, which was the world’s second-largest crypto exchange before it collapsed in November. Sam Bankman-Fried, the founder, and other top FTX executives now face federal criminal charges. The compliance problems at Coinbase were first detected during a routine examination in 2020 after the exchange secured a license to operate in New York in 2017, regulators said. They found problems with the exchange’s anti-money-laundering controls going as far back as 2018.
About OODA Analyst
OODA is comprised of a unique team of international experts capable of providing advanced intelligence and analysis, strategy and planning support, risk and threat management, training, decision support, crisis response, and security services to global corporations and governments.