Coinbase Ireland’s cash safeguards fell €5 million short before 2024 fix
Summary
Ireland’s central bank found Coinbase Ireland’s customer-funds safeguarding account was underfunded daily from January 2023 to June 2024, with shortfalls reaching €5 million. The regulator said customers might have struggled to recover funds if the firm had failed, though it found no evidence of actual consumer harm. Coinbase admitted breaches, corrected the shortfall and related defects, and accepted a reprimand and a €3.25 million penalty, subject to High Court confirmation. The findings also cited inadequate segregation of customer funds across Coinbase entities and insufficient oversight of outsourced operations.
