BitPay settles with OFAC over alleged sanctions violations

BitPay has reached a settlement deal with the Office of Foreign Assets Control (OFAC) over alleged sanctions violations.

The crypto payments firm will remit $507,375 related to digital currency transactions between U.S. merchants and users who appeared to be located in Ukraine, Cuba, North Korea, Iran, Sudan and Syria. 

OFAC alleges BitPay's "deficiencies" in its sanctions compliance program led to about 2,102 transactions from 2013 to 2018 that could be considered violations. The digital currency payments were equivalent to $129,000.

OFAC has determined that those apparent violations "were not voluntarily self-disclosed and were non-egregious." Most of the individual transactions were less than $100 and related to online hosting services and gaming, according to BitPay. The firm said it views this as a testament to its compliance program at the time.

While BitPay did screen merchants against OFAC's blocked persons list (SDN List), it didn't screen data related to buyers, according to OFAC. 

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