Cryptocurrency services provider BitGo has agreed to pay $98,830 to settle violations of multiple sanctions programs, US Department of the Treasury has announced.
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According to a press release, BitGo "failed to prevent" persons located in sanctioned jurisdictions from using its non-custodial digital wallet management service. The watchdog claims BitGo "had reason to know" that users were located in sanctioned jurisdictions based on their IP addresses.
"At the time of the transactions, however, BitGo failed to implement controls designed to prevent such users from accessing its services," the document says.
Prior to April 2018, BitGo allowed individual users of its secure wallet management services to open an account by providing only a name and email address. In April 2018, the company amended its practices to require all new account holders to also verify the country in which they are located.
Earlier in December, PayPal terminated acquisition talks with BitGo. While the reason remains unknown, BitGo CEO Mike Belshe said that the custodian is not profitable, as it is in "growth mode."
As of press time, BitGo hodls over $16 billion worth of cryptocurrency.
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