Current:Home > MarketsCryptocurrency giant Coinbase strikes a $100 million deal with New York regulators -×
Cryptocurrency giant Coinbase strikes a $100 million deal with New York regulators
View
Date:2025-04-13 16:32:25
Coinbase, a publicly traded cryptocurrency exchange, will pay $100 million in fees because of "significant failures in its compliance program" that violated New York state laws.
Wednesday's announcement of the settlement between Coinbase and the New York State Department on Financial Services comes on the heels of other actions by other regulatory agencies to monitor cryptocurrency companies. Those efforts have gained urgency after the November collapse of FTX, one of the largest cryptocurrency exchanges in the world. Its former founder, Sam Bankman-Fried now faces multiple criminal charges.
The Coinbase settlement also comes a day after the Federal Reserve, the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation released a joint statement on the impact the agencies believe that crypto could have on banking organizations.
"Given the significant risks highlighted by recent failures of several large crypto-asset companies, the agencies continue to take a careful and cautious approach related to current or proposed crypto-asset-related activities and exposures at each banking organization," the statement reads.
In the settlement, Coinbase agreed to pay $50 million in penalty fees to the state, and another $50 million to ramp up its compliance program.
New York regulators found that failures in the cryptocurrency exchange's compliance program made it "vulnerable to serious criminal conduct, including, among other things, examples of fraud, possible money laundering, suspected child sexual abuse material-related activity, and potential narcotics trafficking."
These failures included an overly simplistic customer due-diligence program, a backlog of thousands of unreviewed transaction monitoring alerts, and other suspicious activity the exchange failed to properly investigate.
Paul Grewal, Coinbase's chief legal officer, told NPR on Wednesday that the improvement it is making in its compliance program now "outpaces every other other crypto exchange anywhere in the world ... our customers can feel safe and protected while using our platforms."
"Coinbase has taken substantial measures to address these historical shortcomings and remains committed to being a leader and role model in the crypto space, including partnering with regulators when it comes to compliance," Grewal said in an emailed statement.
Coinbase, led by tech-entrepreneur Brian Armstrong, boasts 108 million verified users across more than 100 countries, according to its site. There are $101 billion in assets on the platform, and $159 billion in quarterly volume traded.
veryGood! (95976)
Related
- Off the Grid: Sally breaks down USA TODAY's daily crossword puzzle, Triathlon
- Brazil to militarize key airports, ports and international borders in crackdown on organized crime
- ‘A curse to be a parent in Gaza': More than 3,600 Palestinian children killed in just 3 weeks of war
- A magnitude 6.1 earthquake has shaken the Timor region of Indonesia
- Angelina Jolie nearly fainted making Maria Callas movie: 'My body wasn’t strong enough'
- Bracy, Hatcher first Democrats to announce bids for revamped congressional district in Alabama
- Alabama court says state can execute inmate with nitrogen gas
- The Fed held interest rates steady — but the fight against inflation is not over yet
- The company planning a successor to Concorde makes its first supersonic test
- Barry Manilow on songwriting, fame, and his new Broadway musical, Harmony
Ranking
- Global Warming Set the Stage for Los Angeles Fires
- Crowds gather near state funeral home as China’s former Premier Li Keqiang is being put to rest
- Britney Spears’ memoir a million seller after just one week on sale
- Chase Young trade is latest blockbuster pulled off by 49ers' John Lynch and Kyle Shanahan
- The Daily Money: Spending more on holiday travel?
- Cornell University student accused of posting online threats about Jewish students appears in court
- Detroit-area man sentenced to 45-70 years in prison for 3 killings
- Storied football rivalry in Maine takes on extra significance in wake of shooting
Recommendation
Global Warming Set the Stage for Los Angeles Fires
Bulgaria expels Russian journalist as an alleged threat to national security
Georgia Tech scientist sentenced to nearly 6 years for defrauding university, CIA
The US has strongly backed Israel’s war against Hamas. The allies don’t seem to know what comes next
California DMV apologizes for license plate that some say mocks Oct. 7 attack on Israel
Alabama parents arrested after their son's decomposing body found in broken freezer
Don't tip your delivery driver? You're going to wait longer on that order, warns DoorDash
Model Athenna Crosby Speaks Out About Final Meeting With Matthew Perry One Day Before His Death