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Business ProfileforCoinbase, Inc
Current Alerts For This Business
On January 2, 2023, Coinbase entered into a settlement agreement with the New York State Department of Financial Services’ (DFS.)
The settlement stems from a 2020 examination that found that between July 1, 2018, through December 31, 2019, Coinbase had significant failures in their compliance program that caused the company to be in violation of New York banking law and DFS regulations. According to court documents in 2020/2021, Coinbase did take steps to remediate issues but due to the company’s growth by the end of 2021, the company’s compliance situation reached a critical stage. Where deficiencies were found included their Know-Your-Customer/Customer Due Diligence (“KYC/CDD”) procedures, their Transaction Monitoring System (“TMS”), and their OFAC screening program. The examination also found that Coinbase failed to conduct adequate annual Anti-Money Laundering (“AML”) risk assessments. The failures allowed the platform to be vulnerable to serious criminal conduct.
As part of the consent order Coinbase will pay a $50 million penalty, invest an additional $50 million into its compliance program and continue to work with a DFS appointed Independent Monitor.
Additional business information
The following describes a pending government action that has been formally brought by a government agency but has not yet been resolved. We are providing a summary of the government’s allegations, which have not yet been proven.
On July 6, 2023, the Securities and Exchange Commission (SEC) charged Coinbase and Coinbase Global Inc. (Case 1:23-cv-04738) with operating and trading crypto assets as an unregistered national securities exchange, broker and clearing agency. Coinbase is also being charged with failure to register the offer and sale of its crypto asset staking as a service program as well as operating as an unregistered broker through two services it offered investors through Coinbase Prime and Coinbase Wallet.
According to court documents, it is alleged that since 2019 Coinbase has been offering these services in violation of multiple registration provisions of the Securities and Exchange Act. Failure to register deprived investors of protections which include inspections by SEC, recordkeeping requirements, and safeguards against conflicts of interest.
The case is currently pending.
At-a-glance
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Business Details
- Headquarters
- San Francisco, CA 94111-5235
- BBB File Opened:
- 9/12/2013
- Years in Business:
- 12
- Business Started:
- 5/12/2012
- Business Started Locally:
- 5/12/2012
- Licensing Information:
- This business is in an industry that may require professional licensing, bonding or registration. BBB encourages you to check with the appropriate agency to be certain any requirements are currently being met.
- Type of Entity:
- Corporation
- Number of Employees:
- 3500
Customer Complaints
3,212 Customer Complaints
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File a ComplaintMost Recent Customer Complaint
07/09/2024
- Complaint Type:
- Product Issues
- Status:
- Resolved
Customer Reviews
460 Customer Reviews
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Most Recent Customer Review
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07/17/2024
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