ShapeShift Settles Sanctions Violations with $750K Fine
- Defunct crypto exchange ShapeShift agreed to pay $750,000 to settle alleged violations of the U.S. Treasury Department’s Office of Foreign Assets Control.
- The exchange processed over $12.5 million in cryptocurrency transactions from users in sanctioned countries like Cuba, Iran, Sudan, and Syria between December 2016 and October 2018.
- ShapeShift did not have a sanctions compliance program until receiving an administrative subpoena from OFAC.
- Founded by Erik Voorhees, ShapeShift closed operations in 2021 and previously settled with the SEC for $275,000 over separate allegations.
The U.S. Treasury Department alleges that ShapeShift facilitated transactions for users in sanctioned jurisdictions without proper compliance measures, harming the integrity of multiple sanctions programs.
Despite its closure and limited assets, ShapeShift’s settlement highlights the importance of compliance with international sanctions in the crypto industry. (Source)
