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

If the regulators are after you, and are trying to make a case against you, and you are going to contest their allegations against you, make sure you have the best securities industry defense lawyers, Eccleston Law Firm. My case was spun into a combination of penalties including fines, cash settlements, CE courses and suspension. They were the best I have seen in action. When all was said and done, they had done their magic, my situation was negotiated and settled with a simple "letter of caution" and a case closed without action. It is the most important legal business decision you will ever make, make it Eccleston Law.

Rick R.

LATEST NEWS AND ARTICLES

1790867615 Law
October 1, 2026
Prosecutors Target Multimillion-Dollar Investment Schemes Involving Promissory Notes

Federal prosecutors recently pursued two investment fraud cases involving promissory notes that caused combined investor losses exceeding $25 million.

1790789328 Law
September 30, 2026
SEC Approves FINRA Overhaul of Outside Business Activity Rules

The Securities and Exchange Commission (SEC) has approved FINRA's long-awaited overhaul of the rules governing outside business activities and private securities transactions by financial advisors.

1790700476 Law
September 29, 2026
Texas Investment Adviser Sentenced to 11 Years for $35 Million Ponzi Scheme

A federal judge has sentenced Siddharth Jawahar, who operated Texas-based investment adviser Swiftarc Capital, to 11 years in prison for running a $35 million Ponzi scheme.