Add as a preferred source on GoogleCoinbase Ireland Agrees to €3.25 Million Central Bank Settlement
The review covered how the unit calculated and held protected customer funds, as well as outsourcing tied to some safeguards.
Coinbase Ireland Limited agreed to pay €3.25 million in a settlement with the Central Bank of Ireland over weaknesses in safeguards for customer funds at its European fiat-services business.
The review examined how the unit calculated the amount to protect, where it held the funds and outsourcing arrangements related to some safeguards. The issues included mixing funds linked to different Coinbase entities and using the protected-funds account for some withdrawals by customers of other entities.
A coding error left the account short by an average of about 0.54% during 2023 and the first half of 2024. The problems were corrected, and no customer suffered a financial loss or was unable to withdraw funds.
Riza Dagoc
Riza Dagoc reports on regulation, investing and the digital-asset business for TokenPost. Send corrections or tips to info@tokenpost.com.