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Coinbase has announced that it will give the sum of $100 million to close an investigation into its failures in the company's anti-money laundering and KYC actions.
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It would pay 50 million dollars to the New York Department of Financial Services and put the same amount into developing these programs to the standard.
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The flaws in Coinbase's compliance procedures were evident when the price of bitcoin increased to nearly $60,000 in 2021.
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In the final days of the year, the exchange was sat on the alerts of 100,000 unreviewed transactions with 14,000 users in need of increased due diligence.
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NYDFS superintendent Adrienne Harris said that "Coinbase was unable to create and maintain a fully functional compliance program that would keep up with the expansion (our focus).
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"That failure exposed the Coinbase platform to potential criminal activity requiring the Department to take immediate action including the installation of an Independent Monitor."
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As per the NYDFS, the criminal activities involved a former employee at Coinbase who was previously arrested for sexual assault on children, as well as committing a series of suspect transactions.
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It took Coinbase over two years to find out about the alleged activity.