US SEC Charges Poloniex for Running an Unregistered Crypto Exchange

hacker office with headphones with microphone search prey steals data copy bank from his underground hideout scaled

However, the financial watchdog specified that Poloniex LLC didn’t comply with the rulings of running a licensed exchange. In fact, the SEC says the web-based trading platform met the criteria to be considered as an exchange, according to the securities laws. “The order finds that notwithstanding its operation of the Poloniex trading platform, which was available to U.S. investors, Poloniex did not register as a national securities exchange nor did it operate pursuant to an exemption from registration at any time, and its failure to do so was a violation of Section 5 of the Exchange Act,” the US SEC noted.

On the other hand, Kristina Littman, Chief of the SEC Enforcement Division’s Cyber Unit, commented that the crypto company preferred to increase profits over compliance with federal securities laws. That said, Poloniex agreed to accept a cease and desist order issued by the SEC and paying a disgorgement of $8,484,313, prejudgment interest of $403,995, and a civil penalty of $1.5 million for a total of $10,388,309. It also includes establishing a fund to compensate the victims.

“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,” Littman added.

Ontario Watchdog Warning on Poloniex

In May, the Ontario Securities Commission (OSC) accused the crypto exchange of breaking its securities laws. Although Poloniex is subject to the laws of the Republic of Seychelles, the Canadian regulator pointed out that the crypto exchange has never been registered with the OSC to offer trading services in Ontario.

Ronnie Huss

Ronnie Huss

Leave a Reply

Your email address will not be published. Required fields are marked *

Share:

Share on telegram
Share on facebook
Share on twitter
Share on linkedin
Share on whatsapp

Related Posts

bitcoin
Bitcoin (BTC) $ 65,145.45
ethereum
Ethereum (ETH) $ 3,180.91
tether
Tether (USDT) $ 1.00
bnb
BNB (BNB) $ 574.62
solana
Solana (SOL) $ 151.13
usd-coin
USDC (USDC) $ 1.00
staked-ether
Lido Staked Ether (STETH) $ 3,179.17
xrp
XRP (XRP) $ 0.528522
dogecoin
Dogecoin (DOGE) $ 0.163549
the-open-network
Toncoin (TON) $ 6.23
cardano
Cardano (ADA) $ 0.507167
shiba-inu
Shiba Inu (SHIB) $ 0.000028
avalanche-2
Avalanche (AVAX) $ 38.21
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 65,206.47
bitcoin-cash
Bitcoin Cash (BCH) $ 513.20
polkadot
Polkadot (DOT) $ 7.22
tron
TRON (TRX) $ 0.111174
chainlink
Chainlink (LINK) $ 14.97
internet-computer
Internet Computer (ICP) $ 15.64
matic-network
Polygon (MATIC) $ 0.738179
near
NEAR Protocol (NEAR) $ 6.35
litecoin
Litecoin (LTC) $ 85.15
uniswap
Uniswap (UNI) $ 7.85
leo-token
LEO Token (LEO) $ 5.74
dai
Dai (DAI) $ 1.00
aptos
Aptos (APT) $ 10.14
ethereum-classic
Ethereum Classic (ETC) $ 28.20
blockstack
Stacks (STX) $ 2.80
mantle
Mantle (MNT) $ 1.23
filecoin
Filecoin (FIL) $ 6.72
first-digital-usd
First Digital USD (FDUSD) $ 1.00
render-token
Render (RNDR) $ 9.20
crypto-com-chain
Cronos (CRO) $ 0.131521
cosmos
Cosmos Hub (ATOM) $ 8.66
stellar
Stellar (XLM) $ 0.116062
okb
OKB (OKB) $ 55.77
arbitrum
Arbitrum (ARB) $ 1.22
immutable-x
Immutable (IMX) $ 2.21
renzo-restaked-eth
Renzo Restaked ETH (EZETH) $ 3,207.65
bittensor
Bittensor (TAO) $ 481.56
hedera-hashgraph
Hedera (HBAR) $ 0.089380
dogwifcoin
dogwifhat (WIF) $ 3.11
vechain
VeChain (VET) $ 0.042260
maker
Maker (MKR) $ 3,140.63
kaspa
Kaspa (KAS) $ 0.120321
the-graph
The Graph (GRT) $ 0.289647
fetch-ai
Fetch.ai (FET) $ 2.52
injective-protocol
Injective (INJ) $ 29.37
optimism
Optimism (OP) $ 2.51
pepe
Pepe (PEPE) $ 0.000006