US Treasury Settles With BitGo Over Charges To Transact Using Its Crypto Wallet Services Between 2015 And 2019
US Treasury Settles With BitGo Over Charges To Transact Using Its Crypto Wallet Services Between 2015 And 2019
December 31, 2020
US Treasury Settles With BitGo Over Charges To Transact Using Its Crypto Wallet Services Between 2015 And 2019
US Treasury Settles With BitGo Over Charges To Transact Using Its Crypto Wallet Services Between 2015 And 2019
December 31, 2020

The US Treasury has settled with BitGo, an institutional crypto custodian service and wallet operator, over charges that it facilitated users in sanctioned areas to transact using its crypto wallet services between 2015 and 2019.

It has been reported by the Treasury’s Office of Foreign Asset Controls (OFAC) that BitGo did not do due diligence in blocking wallet users based in Crimea, Cuba, Iran, Sudan, and Syria.

OFAC said:

“BitGo failed to exercise due caution or care for its sanctions compliance obligations when it failed to prevent persons apparently located in sanctioned jurisdictions to open accounts and send digital currencies via its platform as a result of a failure to implement appropriate, risk-based sanctions compliance controls.”

However, the Treasury wrote that there were 183 “apparent violations” of its various sanctions programs by adding up to just over $9,000 in transactions. They retain the status of “apparent” as the accusations are based on the IP addresses from which users accessed BitGo hot wallets.

ALSO READ :  Formula E To Develop Blockchain-Powered Motorsports Game Featuring NFTs

In mitigating factors, the Treasury said:

“BitGo screens all accounts, including “hot wallet” accounts, against OFAC’s Specially Designated Nationals and Blocked Persons List, including blocked cryptocurrency wallet addresses identified by OFAC.”

Likewise, the settlement will cost BitGo $98,830. Given the hawkishness of OFAC’s programs, the settlement is relatively lenient, even though the actual value transacted was less than 10% of the fine.

The civil penalty, had the case gone to court, would have been between $183,000 and $53 million.

Thus, the report stated:

“This action highlights that companies involved in providing digital currency services — like all financial service providers — should understand the sanctions risks associated with providing digital currency services and should take steps necessary to mitigate those risks.”

Source: Cointelegraph


Disclaimer

Crypto News Point a news platform of Digital Notice Media Labs is primarily a regular publication of information, commentary and articles focused extensively on fintech, blockchain technology, cryptocurrency, blockchain-based tokens, cryptocurrency market trends, and trading strategies. We do not provide individually tailored investment advice and does not take a subscriber’s or anyone’s circumstances into consideration when discussing investments, nor is Crypto News Point registered as an investment adviser or broker-dealer in any jurisdiction. Information contained herein is not an offer or solicitation to buy, hold, or sell any digital assets.

Affiliate Disclosure: To help support the work we do here at CNP, we often link to products and deals from around the web. Should you buy some of these, we may get a portion of the sale.

We in generally gather content from the major websites. In every article there is always a clear link and attribution to the source publication. If you have any issue with any of our published content taken from your site, kindly let us know so that we can take appropriate action. In any case, the content of the pages of this website is for your general information and use only. It is subject to change without notice.

You May Also like

Ishita Bora

Ishita Bora is a Senior Content Creator at Digital Notice Media Labs with an experience of 1 year. She has completed her Master's Degree in Language and Linguistics in 2019 from Gauhati University, India. Her interest lies in blockchain technology and cryptocurrency space, as she loves writing about blockchain and other blockchain-related articles. Currently, she is working on blockchain-based news, reviews, featured articles, and guides.