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Coinbase (COIN) Rallies on $100 Million Settlement News

Wed, 01/04/2023 - 15:36
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Alex Dovbnya
Coinbase stock surged after exchange reached settlement with US regulators
Coinbase (COIN) Rallies on $100 Million Settlement News
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Coinbase, a publicly traded U.S.-based cryptocurrency trading exchange, has agreed to pay a $50 million penalty to the New York State Department of Financial Services for failing to conduct adequate background checks on customers in violation of anti-money-laundering laws, Reuters reports.

The settlement also requires the company to invest an additional $50 million in order to strengthen its compliance program and prevent criminals from opening accounts with the exchange.

The company's embattled stock has spiked 7% on the settlement news.

Regulators found that Coinbase allowed customers to open accounts without  investigating their backgrounds or keeping an eye out for suspicious activity.

The exchange was ordered to appoint an independent monitor to help reorganize its day-to-day operations.

This settlement will require Coinbase to work with the monitor for another year in order improve its compliance system.

Coinbase's stock took a massive hit last year due to the double whammy of falling crypto prices and the FTX drama.

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at