Coinbase Ordered to Pay $100 Million in Fees
- The settlement follows regulatory efforts to monitor cryptocurrency companies, including the collapse of FTX and the arrest of its founder on criminal charges.
- Coinbase has been ordered to pay $50 million in penalty fees to the state of New York and $50 million to improve its compliance program.
Coinbase, a publicly traded cryptocurrency exchange, has been ordered to pay $100 million in fees due to “significant failures” in its compliance program that violated New York state laws.
This announcement follows recent regulatory efforts to monitor cryptocurrency companies, including the collapse of FTX, one of the world’s largest cryptocurrency exchanges, and the arrest of its founder, Sam Bankman-Fried, on multiple criminal charges.
The settlement requires Coinbase to pay $50 million in penalty fees to the state and an additional $50 million to improve its compliance program. New York regulators discovered that Coinbase’s compliance program had failed to properly investigate suspicious activity and had left the exchange vulnerable to criminal conduct, including potential fraud, money laundering, and narcotics trafficking. In response,
Coinbase has claimed that it is now implementing the most advanced compliance program of any crypto exchange in the world and that its customers can feel “safe and protected” while using its platforms.
