The New York financial regulator signs a $100 million deal with Coinbase.
$50 million will be used to pay a fine for violating anti-money laundering laws and another $50 million will be spent to strengthen internal compliance controls.
According to the New York State Department of Financial Services (NYDFS) review, Coinbase had an “inadequate and insufficient compliance program.”
The agency found that Coinbase was unable to keep up with the increase in alerts generated by its transaction monitoring system (which flags potential suspicious activity), and by the end of 2021, the company had racked up more than 100,000 unverified alerts.
This resulted in Coinbase failing to investigate and report suspicious transactions in a timely manner, as required by anti-money laundering law.
The crypto exchange agreed to a payment of $100 million, with the company’s chief legal officer emphasizing that “Coinbase continues to strive to be a leader and role model in the crypto space, including partnering with regulators when it comes to complying with the law.” “.
Author:
Polina Solomentseva
Source: RB
I am Bret Jackson, a professional journalist and author for Gadget Onus, where I specialize in writing about the gaming industry. With over 6 years of experience in my field, I have built up an extensive portfolio that ranges from reviews to interviews with top figures within the industry. My work has been featured on various news sites, providing readers with insightful analysis regarding the current state of gaming culture.
