10 million fine for Poloniex
Indeed, over the period of July 2017 and November 2019 the exchange would not have been registered with the regulator to offer certain cryptocurrency services.
In other words, the SEC claimed that the company sold digital assets that were securities when the exchange was not authorized to do so.
In this regard, the regulator therefore fined Poloniex nearly $10 million. Kristina Littman, head of the SEC Division’s Cyber Unit, said:
“Poloniex chose increased profits over compliance with federal securities laws by including digital asset securities on its unregistered platform. Poloniex attempted to circumvent the SEC’s regulatory regime, which applies to any marketplace that connects buyers and sellers of securities, regardless of the technology applied.”
Without admitting or denying the SEC’s charges, Poloniex decided to pay the fine by agreeing to a cease and desist order.
Clarification from Poloniex LLC
Through a tweet, Poloniex LLC stated:
“Following the SEC’s charges against Poloniex, we would like to clarify that the entity that manages Poloniex is Polo Digital Assets. The aforementioned charges will have no impact on Poloniex’s business.”
Interestingly, Poloniex was purchased by Circle in 2018 for $400 million. Since the end of 2019, it has been spun off from the company forming a new company named Polo Digital Assets.
Recently, the US platform Coinbase was also fined. Indeed, the Commodity Futures Trading Commission (CFTC) accused the exchange of, among other things, artificially inflating prices and trading volumes between 2015 and 2018. In this regard, Coinbase has been fined $6.5 million on charges of market manipulation.
Get a crypto news recap every Sunday And that’s it.
About the author: Anthony Bassetto