Coinbase Just Got Hit With A $25M Fine Over Transactions Tied to Dark Web Crime—Here's What The Irish Regulator Found

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exposed the platform to serious criminal activity ranging from drug trafficking to child exploitation.Coinbase Global (NASDAQ:COIN) saw its Irish subsidiary slapped with a 21.5 million euro ($25 million) fine on Oct. 6 after Ireland’s central bank discovered that over 30 million transactions worth more than €176 billion went unmonitored for an entire year due to faulty transaction monitoring systems.Don't Miss:Fast Company Calls It a ‘Groundbreaking Step for the Creator Economy' — Investors Can Still Get In at $0.81/ShareBuffett's Secret to Wealth? Private Real Estate—Get Institutional Access YourselfThe penalty stems from breaches of anti-money laundering and counter-terrorist financing obligations that the regulator said created an opening for criminals to move money undetected through the platform.The Central Bank of Ireland said three coding errors in Coinbase Europe’s transaction monitoring system caused five of 21 red-flag scenarios to fail in screening all transactions during 2021 and 2022.What makes this particularly concerning for investors and regulators alike is the timeline. It took Coinbase almost three years to fully complete the monitoring of the affected transactions, ultimately leading to 2,708 suspicious transactions being reported to authorities for further analysis and potential investigation, Reuters reported.“The failure of such a system within any financial institution creates an opportunity for criminals to evade detection—and criminals will take that opportunity,” Irish Central Bank Deputy Governor Colm Kincaid said in central bank's statement.Trending: Wall Street's $12B Real Estate Manager Is Opening Its Doors to Individual Investors — Without the Crowdfunding MiddlemenFor Coinbase shareholders, this Irish penalty carries weight beyond the fine itself. Coinbase Europe provides crypto asset and wallet services to customers globally, facilitating use of the Coinbase Group’s trading platform to buy and sell crypto assets. 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