Enforcement Release - BitGo, Inc.

Date issued: Dec. 31 2020

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TURBOFAC Commentary (239 words)

Notes:

1) The BitGo, Inc. enforcement release is the first enforcement action to relate in any way to cryptocurrency. See e.g., FAQ # 559, FAQ # 560 and Letter From B. McGuire (Treasury) to Rep. E. Cleaver re: Cryptocurrencies (2019), for OFAC warnings/explanations that U.S. person compliance obligations the same, regardless of whether a transaction is denominated in digital currency or traditional fiat currency.

In this case, BitGo offered access to accounts and transaction processing services in a way that OFAC considered to constitute the exportation of services to the sanctioned destinations at issue. The prohibitions on the exportation of services to embargoed destinations applies when the person receiving the service is “in” or “ordinarily resident in” the sanctioned destination at issue. OFAC’s practice has been to consider the accessing of a U.S. person-operated site from a sanctioned country...