Tr?id=566623520170033&ev=PageView&noscript=1

Coinbase Agrees to $100 Million Settlement With New York Regulators

Posted on January 13th, 2023 at 12:27 PM
Coinbase Agrees to $100 Million Settlement With New York Regulators

From the Desk of Jim Eccleston at Eccleston Law.

Coinbase Global Inc., has agreed to a $100 million settlement with New York Regulators over allegations that the cryptocurrency exchange permitted customers to open accounts without conducting adequate background checks.

Coinbase will pay a $50 million fine and additionally spend $50 million in an effort to improve compliance over a two-year period, according to the New York State Department of Financial Services. The regulators cited certain violations. For example, Coinbase opened a customer account in one instance where the individual was criminally charged with crimes pertaining to child sexual abuse materials in the 1990s. Coinbase failed to close the account for nearly two years.

As another example, Coinbase permitted an individual claiming to be a company employee to open an account on behalf of the company without authorization, which lead to $150 million being misappropriated. Finally, the New York State Department of Financial Services determined that Coinbase had failed to keep up with a swelling backlog of at least 100,000 unreviewed transaction monitoring alerts by late 2021.

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

Tags: eccleston, eccleston law, advisors, law, sec

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

Jim, Stephany and the whole team were a God send.  We felt like we were put into a situation where we had no advocate. Jim’s team came in with a strong, well laid out strategy on how to get our story heard. Where our outside compliance company had no ability to help, our Broker Dealer was impenitent, and the regulators were aggressive pursuing vague rules, Jim came like a barricade against an assault we did not understand. Though you pay member dues to be affiliated with FINRA and a B/D, you have no voice. The only thing that is truly heard in this un-level playing field is a bulldog’s bark like Jim’s. I would encourage anyone to call Jim and his team to find a real ally in the tough and complicated world of securities regulation. They are truly the best.

Greg P.

LATEST NEWS AND ARTICLES

1790182800 Law
September 23, 2026
SEC Warns Investors About Pre-IPO Investment Scams

The SEC's Office of Investor Education and Advocacy (OIEA) has issued an Investor Alert warning investors about scams that falsely offer opportunities to purchase "pre-IPO" shares of companies.

1790092133 Law
September 22, 2026
Wells Fargo Advisors Continue Manual Trading Amid Vendor Disruption

Wells Fargo Advisors brokers continued placing trading orders by phone and email as a disruption involving an outside vendor persisted for a second week.

1790008446 Law
September 21, 2026
Blackstone Limits Withdrawals From Blackstone Private Credit Fund

Blackstone's flagship private credit fund faces continued pressure from investors seeking liquidity.