Tr?id=566623520170033&ev=PageView&noscript=1

Coinbase Agrees to $100 Million Settlement With New York Regulators

Posted on January 13th, 2023 at 12:27 PM
Coinbase Agrees to $100 Million Settlement With New York Regulators

From the Desk of Jim Eccleston at Eccleston Law.

Coinbase Global Inc., has agreed to a $100 million settlement with New York Regulators over allegations that the cryptocurrency exchange permitted customers to open accounts without conducting adequate background checks.

Coinbase will pay a $50 million fine and additionally spend $50 million in an effort to improve compliance over a two-year period, according to the New York State Department of Financial Services. The regulators cited certain violations. For example, Coinbase opened a customer account in one instance where the individual was criminally charged with crimes pertaining to child sexual abuse materials in the 1990s. Coinbase failed to close the account for nearly two years.

As another example, Coinbase permitted an individual claiming to be a company employee to open an account on behalf of the company without authorization, which lead to $150 million being misappropriated. Finally, the New York State Department of Financial Services determined that Coinbase had failed to keep up with a swelling backlog of at least 100,000 unreviewed transaction monitoring alerts by late 2021.

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

Tags: eccleston, eccleston law, advisors, law, sec

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

Jim, Stephany and the whole team were a God send.  We felt like we were put into a situation where we had no advocate. Jim’s team came in with a strong, well laid out strategy on how to get our story heard. Where our outside compliance company had no ability to help, our Broker Dealer was impenitent, and the regulators were aggressive pursuing vague rules, Jim came like a barricade against an assault we did not understand. Though you pay member dues to be affiliated with FINRA and a B/D, you have no voice. The only thing that is truly heard in this un-level playing field is a bulldog’s bark like Jim’s. I would encourage anyone to call Jim and his team to find a real ally in the tough and complicated world of securities regulation. They are truly the best.

Greg P.

LATEST NEWS AND ARTICLES

1780588152 Law
June 4, 2026
Former Wells Advisor Alleges Age Discrimination

A former Wells Fargo senior private client financial advisor in Wisconsin has filed a federal lawsuit alleging the firm terminated him because of his age rather than an alleged workplace profanity incident.

1780507151 Law
June 3, 2026
Starwood REIT Suspends Most Redemptions Amid Liquidity Pressure

Starwood Real Estate Income Trust (SREIT) has announced a temporary suspension of its share repurchase program for most investors.

1780415363 Law
June 2, 2026
SEC Charges California Trader in Alleged $43 Million Ponzi-Like Scheme

The Securities and Exchange Commission (SEC) has filed a civil action against a California day trader accused of operating a $43 million Ponzi-like scheme that allegedly defrauded more than 400 investors.