Coinbase is vulnerable to money laundering, drug trafficking and fraud, financial regulators in New York said Wednesday in a settlement that requires the cryptocurrency exchange to strengthen its security.New York's Department of Financial Services (NYDFS) found that Coinbase has done a poor job at vetting new customers and examining transactions on the exchange to ensure they comply with state banking, cybersecurity and other rules.Coinbase's fine is another blemish on the fledgling crypto world, which was rocked in November by the sudden collapse of FTX Trading.Other prominent industry players, including BlockFi, Celsius Network and Voyager Digital, also filed for bankruptcy as crypto prices slumped in 2022."We took NYDFS's concerns seriously and have taken substantial measures to address these historical shortcomings," Coinbase Chief Legal Officer Paul Grewal wrote in a company blog post."