Poloniex Agrees to Pay Over $10M to SEC in Settlement for Operating Unregistered Crypto Exchange


The US Securities and Exchange Commission (SEC) announced Monday that cryptocurrency exchange Poloniex has agreed to pay over $10 million to settle charges of operating an unregistered platform that facilitated buying and selling digital asset securities from July 2017 through November 2019.

According to the SEC, Poloniex did not register as a national securities exchange when providing services to US investors and didn’t operate under an exemption from registration at any time either.

The exchange went “aggressive” in making new digital assets, even those that might be securities under the Howey test, available for trading on its platform to increase their market share, said the SEC adding, around July 2018, it further continued to provide its users to trade crypto that is characterized as “medium risk” of being considered securities. Kristina Littman, Chief of the SEC Enforcement Division’s Cyber Unit, said,

“Poloniex attempted to circumvent the SEC’s regulatory regime, which applies to any marketplace for bringing together buyers and sellers of securities regardless of the applied technology.”

Poloniex, acquired by Tron founder Justin Sun in November 2019, has agreed to a cease-and-desist order and to pay a total of $10,388,309 to settle the charge against it without admitting it or denying the SEC’s findings.

“The order establishes a Fair Fund for the benefit of victims,” said the SEC.

Get Daily Headlines

Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

What to Know More?

Join Our Telegram Group to Receive Live Updates on The Latest Blockchain & Crypto News From Your Favorite Projects

Join Our Telegram

Stay Up to Date!

Join us on Twitter to Get The Latest Trading Signals, Blockchain News, and Daily Communication with Crypto Users!

Join Our Twitter

Add comment

E-mail is already registered on the site. Please use the Login form or enter another.

You entered an incorrect username or password

Sorry, you must be logged in to post a comment.
Bitcoin Exchange Guide