The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) and Financial Crimes Enforcement Network (FinCen) announced that Bittrex, a cryptocurrency exchange, was fined $24 million for breaking U.S. sanctions. This is a record-high penalty that the government has imposed on a crypto business for violating sanctions. For over three years, Bittrex allowed customers in Cuba, Iran, Sudan, Syria, and the Crimea region of Ukraine to make trades worth over $263 million. Bittrex was also fined an additional $5 million for its failures to comply with anti-money laundering laws.
Christopher Warren, Managing Partner at Warren Law Group comments on the matter: “If you are a controlling person (or otherwise engaged) in a money services business (“MSB”), then you are subject to the Bank Secrecy Act and must register with The Financial Crimes Enforcement Network (“FinCEN”), a bureau of the U.S. Department of the Treasury that works to prevent international money laundering, terrorist financing, and other financial crimes. The same regulations also apply to cryptocurrency or any other digital asset that lives on the blockchain.”
The corporate attorneys at Warren Law Group can prepare your corporate governance and compliance materials, as well as provide guardrails to keep your MSB compliant with OFAC and FinCen regulatory requirements.
If you are currently under investigation by the Securities and Exchange Commission (SEC), the U.S. Department of Justice (DOJ), the U.S. Attorney’s Office, or the U.S. Treasury’s Office of Inspector General (OIG) for allegations relating to the movement of money through your operation or MSB, you should contact the attorneys at Warren Law Group at (866) 954-7687 or email firstname.lastname@example.org to schedule a consultation.