Bittrex fined $24 million for breaching US sanctions

Crypto exchange Bittrex fined $24 million for breaching US sanctions, Treasury Department announce On Tuesday, the government issued the largest penalty ever imposed on a crypto company for violating the sanctions.

Between 2014 and 2017, Bittrex allowed clients in Cuba, Iran, Sudan, Syria and Ukraine’s Crimea region to conduct virtual currency transactions worth more than $263 million, according to the Treasury Department. The government, which is based in Bellevue, Washington, said it was fined an additional $5 million for breaching rules designed to prevent money laundering and other financial crimes.

“Since its inception, Bittrex has strived to comply with all government requirements diligently and in good faith,” the company said in a statement. She added that the company was “delighted to fully resolve this issue” with government agencies.

The punishment is part of an expanded effort by the Treasury and other agencies to crack down on crypto crimes. In August, oath prevented Americans from Tornado Cash, a crypto platform that criminals have used to launder billions of dollars in digital currency. US investigators are also looking into possible sanctions violations by Kraken, another crypto exchange, The New York Times mentioned in July.

Without proper precautions, crypto companies can “become a vehicle for illicit actors who threaten the national security of the United States,” Andrea Jacki, director of the Treasury’s Office of Foreign Assets Control, said in a statement. “Virtual currency exchanges operating around the world must understand who – and where – their customers are.”

According to the Treasury, Bittrex has hired no more than two employees, who have received minimal AML training, to review all of its transactions for suspicious activity. The government said the company’s lack of scrutiny had resulted in “significant exposure to illicit financing,” including 116,421 apparent violations of sanctions.

Ryan Mac Contribute to the preparation of reports.