According to reports, the US digital cryptocurrency exchange Coinbase announced today that it has reached a settlement with the New York State Department of Financial Services (NYDFS), agreeing to pay the latter a fine of US$50 million.
In addition, according to the settlement agreement, Coinbase was also required to invest $50 million to support its compliance program. The program aims to prevent drug dealers, child pornography sellers and other potential offenders from opening accounts on Coinbase.
The New York State Department of Financial Services previously said it found Coinbase violated anti-money laundering laws by allowing customers to open accounts without conducting adequate background checks.
The New York State Department of Financial Services said Coinbase’s compliance issues were first discovered during a routine inspection in 2020. Investigators found problems with Coinbase’s anti-money laundering controls dating back to 2018. Coinbase received a license to operate in New York in 2017.
Initially, Coinbase agreed to hire an independent consultant to help overhaul its day-to-day operations to comply with anti-money laundering laws that require knowing its customers’ identities and monitoring their behavior for suspicious activity.
But that didn’t solve the problem, and the New York State Department of Financial Services launched a formal investigation in 2021. The New York State Department of Financial Services said Coinbase did not investigate customers’ backgrounds more deeply; Coinbase did not follow up on suspicious activity alerts from its internal monitoring system.
By the end of 2021, Coinbase had a backlog of more than 100,000 alerts about potentially suspicious customer transactions that had not been properly reviewed, according to the New York State Department of Financial Services.
The New York State Department of Financial Services also found that Coinbase inadvertently helped a digital thief steal $150 million from a company by performing only the most basic checks on people before allowing them to open accounts.
Apparently, the settlement is the latest blow to the once thriving global cryptocurrency trading business. Over the past year, several cryptocurrency companies have filed for bankruptcy, most notably FTX.
Before its collapse last November, FTX was the second-largest cryptocurrency exchange in the world. Today, FTX founder Sam Bankman-Fried (Sam Bankman-Fried) and other executives are facing federal criminal charges.
media reports
Sina Technology IT Home Sina
Event Tracking
- 2023-01-04 Coinbase reached a settlement with the New York State regulator: $100 million to settle illegal charges
- 2022-07-27 The world’s largest cryptocurrency exchange was investigated, and the stock price fell by nearly 90% from the highest price last year, and Ms. Wood sold it wildly
- 2021-04-14 Coinbase surged 52% on the first day of listing
- 2021-04-13 Nasdaq announced the listing price of Coinbase, with a valuation of 65.3 billion US dollars
- 2021-04-13 Coinbase’s revenue in the first quarter was approximately US$1.8 billion, an increase of 844% year-on-year
This article is transferred from: https://readhub.cn/topic/8mjfCKkgPoJ
This site is only for collection, and the copyright belongs to the original author.