Another American crypto exchange faces a $1.2M penalty: CoinList vs OFAC
CoinList Markets (CLM) decided to settle its case with the OFAC for not fully complying with the sanctions.
CoinList is an averagely popular American digital assets trading platform. This platform provides investors with early access to both the newest cryptocurrencies on the market and blue-chip cryptocurrencies. The company is headquartered in San Francisco, California. In 2017, this company was co-founded by Andrew Bromberg, Brian Tubergen, Graham Jenkin, Joshua Slayton, Kendrick Nguyen, and Paul Menchov.
Recently the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced that CoinList Markets agreed to settle charges of violating US sanctions related to the Russia vs Ukraine conflict.
To settle the case, CLM will pay $1.2 million to the OFAC agency. According to the OFAC agency, this crypto firm followed all of the main measures of the sanctions, for example restricting customers belonging to prohibited jurisdictions and rejecting registration for the customers who presented IDs from and provided addresses in sanctioned countries.
The investigation by the OFAC agency found that CLM’s efforts to comply with the sanctions failed at some level because it failed to block some of the Russian customers who managed to access crypto accounts on CLM’s crypto platform after providing addresses in Crimea.
The US regulatory body confirmed that the penalty amount could be very large but CRM’s high-level efforts to comply with the Sanction measures were better, so the OFAC body considered many facts before this penalty amount.
This year, many crypto companies were sued by the US regulatory bodies. In particular, Kraken paid $30 million to the SEC body for crypto staking services, Bittrex agreed to pay $24 million, Binance agreed to pay $4.3 billion and Binance co-founder Changpeng Zhao (CZ) agreed to pay $50 million separately.
Currently, huge numbers of crypto exchanges are in legal conflict with the US SEC & CFTC but the majority of these crypto exchanges are planning to fight against charges. These crypto exchanges are Coinbase & Kraken.
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