Crypto Exchange CoinList To Pay $1.2M To Settle OFAC Sanctions Claims

coinlist fined ofac

Crypto exchange CoinList has just agreed to pay $1.2 million to settle allegations from the U.S. Office of Foreign Assets Control (OFAC). Specifically, the agency accuses CoinList of violating sanctions against Russia by allowing users from Crimea to use their platform.

According to OFAC, CoinList opened 89 accounts for customers who identified their country of residence as ‘Russia,’ but all provided addresses in Crimea during the account registration. OFAC notes that CoinList’s screening systems failed to recognize mentions of ‘Crimea’ or city names within it, indicating a lack of awareness of potential residency in that region.

The annexation of Crimea by Russia in 2014 led to various countries imposing sanctions on Russia. Despite CoinList’s fine being relatively small at $1.2 million, significantly less than the maximum possible penalty of $327 million, OFAC explains that this is due to the exchange’s cooperation in the investigation and its relatively small transaction volume.

OFAC emphasizes the importance for cryptocurrency companies, especially those offering financial services to a global customer base, to incorporate risk-based sanctions compliance into their business functions. In response to the situation, CoinList has committed to investing $300,000 in compliance measures, demonstrating a dedication to learning and improving compliance processes.

CoinList is known for being a reputable platform that facilitates large initial coin offerings (ICOs). The exchange completed a $100 million fundraising round in October 2021, with a company valuation reaching $1.5 billion.

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Chi Do
Chi Do
Chi Do is a content writer at CoinMinutes, responsible for creating most of the content on the website, including news related to Bitcoin (BTC), Ethereum (ETH), Blockchain, Decentralized Finance (DeFi), and more. With a keen interest in cryptocurrencies since the 2020s, Chi has acquired extensive experience and knowledge in this field. Chi holds a Bachelor's degree in communication from Academy of Journalism and Communication in Vietnam.

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