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Bitcoin wallet was fined for having transactions from Iran and several other countries

BitGo has agreed with the US Treasury Department’s Office of Foreign Assets Control (OFAC) to pay a fine of about $ 100,000 for violating US sanctions.

To Report The Block has accused Bitcoin of failing to take action to prevent citizens from accessing the embargoed areas. According to the agency, Bitgo provided services to citizens of Crimea, Cuba, Iran, Sudan and Syria between 2015 and 2019. Access to the company’s hot wallets is one of the sanctions violations that Bitgo has committed. Interestingly, during this period, only 183 transactions with a total value of $ 9,130 ​​were made through Bitcoin from these countries.

In another part of the allegations against Bitcoin, it is stated that the wallet service provider was aware that some of the connected IPs belong to the sanctioned areas, but was unable to take appropriate measures to cut off their access. Because Bitgo did not voluntarily provide this information to legal authorities, it will be required to pay a fine.

Under an agreement between Bitgo and the Office of Foreign Assets Control, the company has agreed to pay a $ 98,830 fine under civil liability. Violations of the sanctions could result in fines of up to $ 53 million, but in the case of Bitgo, the charges are not serious and the company has worked with the judiciary. In addition to paying the fine, Bitgo has agreed to take steps to remedy the problems. The company has also hired a new legal director whose job is to ensure that Bitgo’s actions comply with the laws of different countries. According to the Office of Foreign Assets Control, this case shows that companies operating in the field of digital currencies and all financial service providers need to take appropriate steps to better understand legal implications such as sanctions and breach risks.


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