Central bank fines Coinbase Ireland $3.6 million over fund safeguarding failures
Summary
The Central Bank of Ireland fined Coinbase Ireland €3.25 million for failures in safeguarding customer funds and managing outsourced services. It said the company relied too heavily on its U.S. parent and had weak system design and control testing. Coinbase cited account changes during Silvergate’s 2023 crisis, withdrawals for U.S. and U.K. customers paid from the Irish safeguarding account, and coding errors that left the account underfunded by an average of 0.54% in 2023 and early 2024. Coinbase said no customers lost access to funds or suffered losses. The fine follows a €21.4 million Irish penalty against Coinbase Europe for AML breaches.
