Coinbase vulnerable to drug trafficking, money laundering and fraud, regulators say
CBS News New York
Coinbase is vulnerable to money laundering, drug trafficking and fraud, financial regulators in New York said Wednesday in a settlement that requires the cryptocurrency exchange to strengthen its security.
New York's Department of Financial Services (NYDFS) found that Coinbase has done a poor job at vetting new customers and examining transactions on the exchange to ensure they comply with state banking, cybersecurity and other rules. Under the settlement, the company will pay a $50 million penalty and agreed to spend another $50 million over the next two years to address shortcomings identified by the agency.
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