ShapeShift, a defunct crypto exchange, has agreed to pay $750,000 to the U.S. Treasury Department to settle violations related to sanctions. The Treasury Department claims that ShapeShift allowed users from sanctioned countries, including Cuba, Iran, Sudan, and Syria, to perform transactions without any compliance program to screen users or transactions. Between December 2016 and October 2018, the exchange processed over $12.5 million in transactions from these jurisdictions. ShapeShift only implemented a compliance program after receiving a subpoena from the Office of Foreign Assets Control (OFAC). The settlement is notably small as the exchange has limited assets, having closed its operations in 2021, and was known for its model allowing users to trade cryptocurrencies anonymously without providing personal information. Founded by Erik Voorhees, ShapeShift faced regulatory issues from the SEC and previously settled fines.

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