Crypto exchange Coinbase fined $50M in the US

·04/01/2023
·Laeti Marison (SatoshiBelle)

The crypto exchange will pay a $50 million fine for violating anti-money laundering laws. Coinbase will also have to invest the same amount to strengthen its compliance program.

Coinbase has agreed to pay a $50 million fine for letting customers open accounts without conducting sufficient checks, violating anti-money laundering laws, the NY Times reported on Wednesday.

The New York State Department of Financial Services detected compliance issues at Coinbase during a routine examination in 2020. At the end of 2021, the platform had a backlog of more than 100,000 alerts about “potential suspicious customer transactions” that were not properly reviewed.

Regulators also found that the company was performing only “the most rudimentary of checks” on KYC (Know your customer).

In addition to the fine, they are requiring the publicly traded California exchange to invest $50 million to improve the effectiveness of its compliance program.

Earlier this fall, the U.S. Treasury Department fined crypto exchange Bittrex $29 million for letting users from sanctioned countries trade assets on its platform.

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Article written by: Laeti Marison (SatoshiBelle)

Laeti Marison, also known as SatoshiBelle, is a multifaceted professional with a passion for community management, content creation, and digital marketing. With a diverse background in various roles, Laeti has consistently demonstrated her expertise and dedication in the field. Recognizing her potential, Laeti then took on the responsibilities of a Project and Community Manager at Magna Numeris and Cartam from November 2018 to March 2021. In this role, she showcased her ability to successfully lead projects and foster strong relationships within the community. Currently, Laeti serves as an SEO content writer, Digital Marketing Manager, and co-founder at Trendingcrypto.news magazine, starting from February 2022 till now. Through her expertise in digital marketing and her passion for the crypto industry, she has contributed to the success of the magazine, ensuring its content remains relevant, engaging, and informative.