Shulou(Shulou.com)11/24 Report--

On the evening of January 4, Beijing time, it is reported that the US digital cryptocurrency exchange Coinbase announced today that it has reached a settlement with the New York State Department of Financial Services (NYDFS) and agreed to pay a fine of 50 million US dollars to the latter.

In addition, under the settlement agreement, Coinbase was required to invest $50 million to support its compliance program. The New York State Department of Financial Services has previously said it found that Coinbase allowed customers to open accounts without adequate background checks, in violation of the anti-money laundering law.

Compliance problems with Coinbase were first identified during a routine inspection in 2020, according to the New York State Department of Financial Services. Investigators found that there were problems with Coinbase's anti-money laundering controls as early as 2018. Coinbase was licensed 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 the requirements of anti-money laundering laws to know the identity of customers and to monitor their actions for suspicious activities.

But that didn't solve the problem, so 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' background more deeply; Coinbase did not further track alerts of suspicious activity in its internal control system.

By the end of 2021, Coinbase had a backlog of more than 100000 alerts about potentially suspicious customer transactions that were not properly reviewed, according to the New York State Department of Financial Services.

The New York State Department of Financial Services also found that Coinbase conducted only the most basic tests on people before allowing them to open an account, inadvertently helping a digital thief steal $150 million from a company.

Clearly, the settlement is the latest blow to the once-booming global digital cryptocurrency trading business. In the past year, several digital cryptocurrency companies have filed for bankruptcy, the most striking of which is FTX.

Before its collapse in November last year, FTX was the world's second-largest digital cryptocurrency exchange. Now FTX founder Sam Bankman-fried (Sam Bankman-Fried) and other executives are facing federal criminal charges.

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