The Securities and Exchange Commission (SEC) fined cryptocurrency exchange Poloniex $ 10 million for operating an “unregistered online digital asset exchange.” Poloniex agreed to pay the fine without admitting or refusing to file the SEC.
Poloniex was fined $ 10 million
Founded in 2014, Poloniex bought Circle in 2018 for $ 400 million. At the end of 2019, she separated from the company and created a new company called Polo Digital Assets. According to The Block, the consortium that acquired it was led by Tron’s founder Justin Sun.
Action The SEC focuses on the time frame July 2017 to November 2019, ie until the moment of sale. The SEC claims that the stock exchange sold digital assets that were securities – although the exchange was not registered to do so.
“Poloniex has made higher profits than complying with federal securities laws,” said Kristina Littman, head of the SEC Enforcement Division’s cyber unit. “Poloniex has sought to circumvent the SEC regulatory regime that applies to any market associating buyers and sellers of securities, regardless of the technology used.”
In June, there were reports that Circle had lost $ 156 million in the initial acquisition of Poloniex due to a legal settlement that included sanctions from the SEC and the Office for the Control of Foreign Assets.
In July, Circle said it had set aside more than $ 10 million in anticipation of a complaint from the SEC. In March, it offered $ 10.4 million for settlement.
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