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

Thank You from the bottom of our hearts for all you have done for us. When we realized this was a very bad investment - we did not know where to turn for help. Then we received your name. When we called you - you were so kind to us and then agreed to help us. For this we are so very grateful. The world would be a much nicer place if there were more people like the two of you in it. We will always remember all the help and kindness you have shown us. Thank you so very very much for everything.

Wayne and Judy S.

LATEST NEWS AND ARTICLES

1785249991 Law
July 28, 2026
Merrill Lynch Fined by FINRA for Failing to Report More Than 1,600 Customer Complaints

Merrill Lynch has agreed to pay a $225,000 fine and accept a censure to resolve allegations that it failed to properly identify and report more than 1,600 customer complaints submitted through post-call surveys, according to a Financial Industry Regulatory Authority (FINRA) Acceptance, Waiver and Consent letter ("AWC").

1784905692 Law
July 24, 2026
Independent Review Recommends Sweeping Changes to FINRA's Enforcement Program

An independent review commissioned by the Financial Industry Regulatory Authority (FINRA) recommends significant changes to the regulator's enforcement program, including adopting a statute of limitations, expanding due process protections, and providing greater credit to firms that cooperate during investigations, according to AdvisorHub.

1784829196 Law
July 23, 2026
Cresset Sues Former Advisor Over Alleged Client Solicitation and Competing RIA Launch

Cresset Capital Management has filed a lawsuit in Illinois state court against a former advisor, alleging that he began building a competing registered investment advisory firm and soliciting clients while still employed by the Chicago-based wealth management firm.