OFAC Fines ShapeShift $750,000 Over Sanctions-Violating Crypto Trades
The settlement underscores OFAC’s expectation that virtual-currency firms use available data to block sanctioned access.
Overview
- OFAC said ShapeShift processed 17,183 transactions totaling about $12.57 million for users in Cuba, Iran, Sudan, and Syria between December 2016 and October 2018.
- The agency found the exchange had no sanctions compliance program, did not screen users or transactions, and only added controls after receiving an OFAC subpoena.
- Despite Swiss incorporation, ShapeShift operated from Denver with U.S.-based leadership and engineers, placing it within U.S. sanctions jurisdiction.
- OFAC calculated a base penalty of $39.5 million but settled on $750,000 due to mitigating factors including cooperation, limited assets, defunct status, and post-subpoena remediation.
- ShapeShift, which closed in 2021, previously settled SEC allegations in 2024 with a cease-and-desist order and a $275,000 penalty.