A single configuration error in Coinbase Europe‘s transaction monitoring system spiraled into a massive regulatory penalty, as announced by the Central Bank of Ireland.
The flaw, which persisted for 12 months, prevented the monitoring of 31% of the firm’s transaction volume—over 30 million trades valued at €176 billion.
The aftermath was a three-year effort to clear the backlog, culminating in 2,708 late filings to financial crime units that highlighted potential links to terrorism, trafficking, and cyberattacks. For these severe breaches of anti-money laundering laws, Coinbase has accepted a fine of €21.5 million.
