Financial Services
Coinbase, IncInformation and Alerts
Alert Details
This business has 1 alert.
Government Actions
Coinbase vs. New York State Department of Finance
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.
Important Information
Customer Complaint
BBB’s business profile for Coinbase Inc. was created in September 2013. A review of complaints was completed in October 2024. Complaints on file state issues with logging into accounts and
concerns of restricted accounts.
BBB recommends consumers review the links provided for consumer account information and assistance. BBB suggest consumers pay specific attention to Section 6.10 of the User Agreement concerning Suspension, termination, and cancellation.
https://help.coinbase.com/en/coinbase/managing-my-account
https://www.coinbase.com/legal/user_agreement/united_states
Service Area
- USA
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