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The U.S. Office of Foreign Assets Control has fined Bitgo for failing to prevent users in sanctioned countries from using its crypto wallet service. The agency says Bitgo processed 183 cryptocurrency transactions that were \u201capparent violations of multiple sanctions programs.\u201d<\/strong><\/p>\n The U.S. Department of the Treasury announced on Wednesday that the Office of Foreign Assets Control (OFAC) has entered into a $98,830 settlement with Bitgo \u201cfor 183 apparent violations of multiple sanctions programs.\u201d Bitgo offers cryptocurrency wallet services. According to the announcement:<\/p>\n Bitgo failed to prevent persons apparently located in the Crimea region of Ukraine, Cuba, Iran, Sudan, and Syria from using its non-custodial secure digital wallet management service.<\/p>\n<\/blockquote>\n \u201cBitgo had reason to know that these users were located in sanctioned jurisdictions based on Internet Protocol (IP) address data associated with devices used to log in to the Bitgo platform,\u201d the announcement describes.<\/p>\n Alleging that Bitgo\u2019s \u201csanctions compliance procedures\u201d were deficient, the OFAC claims that at the time of the transactions, \u201cBitgo failed to implement controls designed to prevent such users from accessing its services.\u201d In addition, \u201cOFAC determined that Bitgo did not voluntarily self-disclose the apparent violations and that the apparent violations constitute a non-egregious case.\u201d<\/p>\n The 183 cryptocurrency transactions Bitgo processed totaled $9,127.79 and took place roughly between March 10, 2015, and Dec. 11, 2019.<\/p>\n \u201cIndividuals located in Crimea, Cuba, Iran, Sudan, and Syria signed up for \u2018hot wallet\u2019 accounts and accessed Bitgo\u2019s online platform to conduct digital currency transactions,\u201d the OFAC detailed. The agency further explained that Bitgo tracked the users\u2019 IP addresses for security purposes but did not use the information for sanctions compliance purposes.<\/p>\n <\/ins> <\/ins> <\/p>\n Bitgo implemented an OFAC sanctions compliance policy after learning about its apparent violations in early 2020. The company \u201crepresented that it has invested in significant remedial measures in response to the apparent violations.\u201d They include hiring a chief compliance officer and implementing a new OFAC policy, which now applies to all of Bitgo\u2019s services. The OFAC noted that now:<\/p>\n Bitgo screens all accounts, including \u2018hot wallet\u2019 accounts, against OFAC\u2019s Specially Designated Nationals and Blocked Persons List, including blocked cryptocurrency wallet addresses identified by OFAC. Bitgo has also conducted a retroactive batch screen of all users.<\/p>\n<\/blockquote>\n What do you think about Bitgo violating the U.S. sanctions programs? Let us know in the comments section below.<\/strong><\/em><\/p>\n The post US Government Fines Bitgo for Allowing Users to Bypass Sanctions With Cryptocurrency<\/a> appeared first on Bitcoin News<\/a>.<\/p>\nUS Treasury Alleges Bitgo Allows Users to Bypass Sanctions<\/h2>\n
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