CoinList Settles with OFAC Over Sanctions Violations
Cryptocurrency exchange and token listing platform CoinList has agreed to pay the Office of Foreign Assets Control (OFAC) of the United States Department of Treasury more than $1.2 million in settlement for violating Russia/Ukraine sanctions. According to OFAC, CoinList allowed users resident in Russia with Crimea addresses to open accounts, despite implementing compliance measures.
OFAC Describes Violations as “Non-Egregious”
In an enforcement release, OFAC stated that CoinList processed almost 1,000 financial transactions for 89 users between April 2020 and May 2022 who provided addresses in Crimea. OFAC highlighted that these transactions were not licensable or involved humanitarian activity. The agency also noted that CoinList failed to exercise due caution by not flagging accounts owned by residents of Crimea.
CoinList Implements Remedial Measures
Following the violations, CoinList took steps to prevent users from sanctioned jurisdictions from accessing the platform through IP geo-blocking. The company also enhanced its filter settings to automatically reject residents of Crimea and hired more experienced compliance personnel. Additionally, CoinList committed to investing $300,000 in additional sanctions compliance controls as part of the settlement.
Hot Take: CoinList Faces Consequences for Sanctions Violations
CoinList’s agreement to pay over $1.2 million in settlement demonstrates the consequences faced by cryptocurrency platforms that fail to comply with sanctions regulations. While OFAC described the violations as “non-egregious,” it is clear that even unintentional breaches can result in significant penalties. This case serves as a reminder for crypto exchanges and platforms to implement robust internal controls and measures to ensure compliance with international sanctions frameworks.
By
By
By
By
By
By