What's wrong with Coinbase?

These issues come less than a day after a display error on its trading platform and crypto wallet caused customers to see inflated prices for non-tradable crypto assets. The prices of cryptocurrencies surged briefly on Coinbase's platform, the company said on Twitter late on Tuesday, adding that trading was not impacted.

Did Coinbase violate anti-money-laundering laws?

Gabby Jones for The New York Times Coinbase, a publicly traded cryptocurrency trading exchange based in the United States, agreed to pay a $50 million fine after financial regulators found that it let customers open accounts without conducting sufficient background checks, in violation of anti-money-laundering laws.

Are Coinbase account holders unsecured creditors?

Users were particularly shaken by a financial filing that suggested Coinbase account holders might be viewed as unsecured creditors in bankruptcy proceedings, seeming to suggest that they might lose money from their accounts if the company becomes insolvent. Coinbase CEO Brian Armstrong contested the claims, saying user funds were not in danger.

Why did Coinbase settle with the New York State Department of financial services?

The settlement with the New York State Department of Financial Services, announced Wednesday, will also require Coinbase to invest $50 million to bolster its compliance program, which is supposed to prevent drug traffickers, sellers of child pornography and other potential lawbreakers from opening accounts with the exchange.