The Central Bank of Ireland has fined Coinbase Ireland €3.25 million ($3.6 million) for failures to protect customer funds, the regulator said. The penalty follows an investigation into breaches of safeguarding and outsourcing rules between November 2020 and August 2025.
Regulator Cites Weak Controls and Overreliance on US Parent
The central bank found that Coinbase Ireland relied too heavily on its US-based parent company for safeguarding customer assets. The Irish operation lacked sufficient local expertise to oversee the work and verify that customer balances remained protected, the regulator said.
It also identified flaws in account systems, testing, and reporting on changes to fund protection. These weaknesses left a designated customer account short for extended periods. The case concerns customer cash, not stolen cryptocurrency.
Coinbase Explains How Funds Were Mixed
Coinbase said the issues stemmed from operational changes and coding errors. According to the company, the troubles at Silvergate Bank in 2023 led it to direct 30 customers to another US bank account. That account held money belonging to clients of a different Coinbase entity, contrary to Irish rules.
Some customers also continued using old UK bank details after Brexit. Coinbase said daily transfers moved those deposits into Ireland’s safeguarded account but did not prevent the mixing of funds. The company added that it paid certain US and UK customers’ euro withdrawals from its Irish account. Coding mistakes left that account underfunded by an average of 0.54% in 2023 and the first half of 2024.
Company Says No Customer Losses
Coinbase said no customer suffered losses or lost access to funds. It reported several problems to regulators in January 2024 and said it has corrected the errors and strengthened its systems.
The company said it has added a €25 million guarantee bond and appointed a dedicated safeguarding chief.
Settlement and Prior Penalty
The central bank agreed a settlement on October 21. Coinbase accepted the findings and a reprimand. A 30% settlement discount reduced the proposed €4.65 million penalty to €3.25 million. Ireland’s High Court must confirm the penalty before it takes effect.
In November 2025, the central bank fined another Coinbase subsidiary, Coinbase Europe, €21.46 million over anti-money laundering monitoring failures.
