On July 1, the California DFPI released a consent order against a bank holding company for allegedly making misleading statements about the bank’s BSA/AML compliance program related to its crypto-asset exchange network. The Fed issued a separate order with similar information. According to the orders, the bank holding company provided financial services to persons who wished to buy and sell crypto-assets. To facilitate these operations, the bank launched an internal payments platform that allowed customers to participate in its crypto-asset exchange network. However, in May 2023, the California DFPI had the bank enter a cease-and-desist order, requiring the bank to liquidate and cease these operations. In June of this year, the bank agreed to pay a civil money penalty of $43 million, in addition to a payment of $20 million as a department penalty, bringing the bank’s penalty package total to $63 million. The bank neither admitted nor denied any of the allegations made by the California DFPI.