American Token Sale Platform CoinList Settles Charges with $1.2 Million Payment
American token sale platform CoinList has reached an agreement with the U.S. Department of Justice’s enforcement branch, agreeing to pay $1.2 million to settle charges. The settlement comes after CoinList processed almost 1,000 transactions on behalf of entities located in sanctioned Crimea between April 2020 and May 2022.
Failure to Capture Users from Sanctioned Crimea
The Office of Foreign Assets Control (OFAC) stated that CoinList’s screening procedures did not identify users who claimed to reside in non-embargoed countries but provided addresses within Crimea. This oversight allowed 89 users who specified Russia as their country of residence, but provided addresses in Crimea, to register on the platform.
Knowledge or Reason to Know
OFAC also mentioned that CoinList either knew or had reason to know that it was facilitating transactions for entities residing in Crimea. As part of the settlement, CoinList has committed to improving its training program and hiring more experienced compliance personnel.
About CoinList
CoinList was founded in 2017 and is based in San Francisco. The token sale platform enables users to buy, sell, and trade various digital assets. Since its establishment, CoinList has raised over $800 million for crypto companies backed by venture firms such as a16z, Sequoia, USV, GV, Bain, Lightspeed, and others.
Hot Take: CoinList Faces Consequences for Sanctions Violation
American token sale platform CoinList has agreed to pay $1.2 million to settle charges brought by the U.S. Department of Justice’s enforcement branch. The company faced allegations of processing transactions on behalf of entities located in sanctioned Crimea. CoinList’s screening procedures failed to identify users who claimed to reside in non-embargoed countries but provided addresses within Crimea, resulting in 89 users being registered on the platform. The settlement requires CoinList to enhance its training program and hire experienced compliance personnel. This case highlights the importance of robust compliance measures to prevent violations of economic sanctions.
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