Coinbase experienced a technical problem that caused some bitcoin transfers from Binance to be blocked. Several users on social media platforms reported that the transfers were being prevented by an OFAC notice. A Coinbase representative confirmed that it was a technical issue that affected less than 100 users, and it has already been resolved. Coinbase has contacted those impacted and informed them that their deposit will be credited soon.
OFAC has a list of crypto wallets and protocols that are sanctioned and labeled as "specifically designated nationals," which prohibits U.S.-based entities from engaging with them. It's possible that this issue was caused by a mistake made during data entry. In August 2022, Tornado Cash was added to the sanctions list due to its association with attempts to conceal the destination of hacked crypto, including by North Korea. Coinbase is supporting a lawsuit that aims to compel the U.S. Treasury to overturn its decision on Tornado Cash.