Enforcement Release: ShapeShift AG

Date issued: Sep. 23 2025

You've hit a wall. Sign in if you have an account, or learn more about TURBOFAC and subscription options.
TURBOFAC is a module of the compliance platform OverRuled. To learn more about OverRuled, visit www.overruled.com.

TURBOFAC Commentary (1171 words)

Notes:

1) As it relates to the legal basis for this enforcement action, apart from the jurisdictional points discussed below, the enforcement action does not do much in the way of breaking new legal ground. This is one of an increasingly long line of internet based cryptocurrency exchanges that has been penalized for providing services to individuals located in embargoed destinations, where OFAC took IP addresses being linked to sanctioned destinations as sufficient basis on which to conclude that the entity fined had provided services to a person in or ordinarily resident in such destination. Compare e.g. Enforcement Release: CoinList Markets LLC.

2) The statement in the “Compliance Considerations” section concerning the “incorporat[ion of] sanctions compliance considerations at the development and beta testing stages” appears to be novel.

3) ShapeShifting on the Definition of “U.S. Person”?

This Enforcement Release appears to break...