CoinList Settles for $1.2M with OFAC over Alleged Sanctions Violations in Crimea
Summary:
CoinList, a US-based cryptocurrency exchange, has settled with the Treasury's Office of Foreign Assets Control (OFAC) for $1.2 million over allegations of sanctions violations. Allegedly, CoinList processed 989 transactions for users in the Crimea region between April 2020 and May 2022, which were in violation of US sanctions. While the violations were deemed "nonserious" and not self-disclosed, OFAC stated that CoinList cooperated with the authorities, with the reported transactions representing a small percentage of the firm's total volume.
The US-based digital currency platform, CoinList, has acquiesced to a settlement amounting to $1.2 million with the Treasury's Office of Foreign Assets Control (OFAC). CoinList allegedly performed operations that seemingly opposed sanctions. On the 13th of December, OFAC reported that CoinList executed nearly 989 transactions involving individuals in Crimea - The Russian-seized territory, which was originally a part of Ukraine - from the period of April 2020 until May 2022. OFAC reports that these seemingly opposed sanctions were "not serious," but CoinList did not disclose them voluntarily.
CoinList's screening protocols were unable to identify users who presented themselves as inhabitants of a non-restricted nation, but still provided a Crimean address. CoinList had created 89 accounts for its clients, the majority of whom declared 'Russia' as their place of residence, but listed Crimean addresses at the time of account formation.
According to OFAC, it was evident to CoinList that these transactions are likely to be from the residents of Crimea, thus breaching U.S. sanctions and financially supporting the region. Although the crypto firm cooperated with American authorities, the transaction volume that seemed to oppose sanctions was "relatively meager" in comparison to the firm's entire transaction volume.
In 2014, Russian forces usurped Crimea, which was previously a region of Ukraine. In response to the seizure, sanctions were imposed on the region by U.S. President Barack Obama, which led to more sanctions on Russia after its military forces invaded Ukraine in February 2022.
Several other American crypto firms have faced similar enforcement actions by OFAC since sanctions were initially put in place. For instance, Poloniex settled for $7.6 million related to more than 65,000 potential sanctions violations, including those associated with Crimea, in May. Aggregate sanctions violations were also a part of Binance's $4.3 billion settlement with American officials over claims of money laundering and fraud.
Published At
12/14/2023 7:30:00 PM
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