U.S. virtual currency exchange agrees to pay $362,000 to settle violations of Iranian sanctions

The virtual currency exchange also agreed to invest an additional $100,000 in certain sanctions compliance controls.

Settle violations of Iranian sanctions

The U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) today announced that a Delaware-incorporated virtual currency exchange with operations in the United States and elsewhere agreed to remit over $362,000 to settle its potential civil liability for apparent violations of sanctions against Iran.

According to today’s OFAC release [PDF 189 KB], the virtual currency exchange also agreed to invest an additional $100,000 in certain sanctions compliance controls.

Due to the virtual currency exchange’s failure to timely implement appropriate geolocation tools, including an automated internet protocol (IP) address blocking system, the virtual currency exchange exported services to users who appeared to be in Iran when they engaged in virtual currency transactions on their platform.

The settlement amount reflects OFAC’s determination that the apparent violations were non-egregious and voluntarily self-disclosed.  

For more information, contact a professional with KPMG’s Trade & Customs services:

Doug Zuvich
Partner and Global Practice Leader
E: dzuvich@kpmg.com

John L. McLoughlin
Principal and East Coast Leader
E: jlmcloughlin@kpmg.com

Andy Siciliano
Partner and National Practice Leader
E: asiciliano@kpmg.com

Steve Brotherton
Principal and Global Export and Sanctions Leader
E: sbrotherton@kpmg.com

Luis (Lou) Abad
Principal, Washington National Tax
E: labad@kpmg.com

Irina Vaysfeld
E: ivaysfeld@kpmg.com

Amie Ahanchian
E: aahanchian@kpmg.com

Christopher Young
E: christopheryoung@kpmg.com

Gisele Belotto
E: gbelotto@kpmg.com

George Zaharatos
E: gzaharatos@kpmg.com

Andy Doornaert
Managing Director
E: adoornaert@kpmg.com

Jessica Libby
E: jlibby@kpmg.com

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