Coinbase lawyer criticizes US General Accounting Office statement
Coinbase lawyer criticizes US General Accounting Office statement
The report by the US General Accounting Office (GAO) states that cryptocurrencies, and Bitcoin in particular, facilitate the transfer of funds by cybercriminals and are used to evade sanctions by states subject to US sanctions. Coinbase Chief Legal Officer Paul Grewal criticized and condemned the GAO's view.
The GAO report cited examples and schemes that use Bitcoin to circumvent sanctions. The GAO expressed concern about the use of cryptocurrencies to circumvent US economic sanctions.
The report provides evidence that sanctioned countries have used cryptocurrencies to circumvent US economic restrictions. In particular, it cited evidence that Russian and Venezuelan nationals used crypto transfers to do so. The GAO also highlighted that the Treasury Department ordered Binance and its subsidiaries to pay a significant fine for violating US sanctions and anti-money laundering laws.
Paul Grewal posted a statement on X (Twitter) about the baselessness of the GAO's findings and urged readers to scrutinize the contents of the report. He is outraged: "Zero comparative analysis performed." Grewal challenged all of the GAO's claims.
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In his comments, he angrily accused the GAO of targeting the crypto sector, which is deliberately promoting compliance and investing millions in developing anti-money laundering rules and practices.
Paul Grewal said that the GAO notice contains statements that cryptocurrencies are a way around sanctions. He stated that references in the text indicate the opposite: that digital assets are not an effective means of evading sanctions. In other words, he said, the GAO is not so sure of its position, and therefore the crypto industry cannot be accused of facilitating money laundering.
Also, Paul Grewal said that taxpayers are being forced to support the GAO's pointless research and disgusting work and that the government is using their funds for such "shoddy work". "That's the smell of taxpayer money being burned."
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The allegations come amid a legal battle between Coinbase and the US Securities and Exchange Commission (SEC). The regulator has filed a lawsuit against the exchange, accusing it of operating as an unregistered securities exchange. Coinbase denies the allegations and has counterclaimed that the regulator has no authority to control crypto assets.
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