SEC fines Poloniex platform $ 10 million – for what?

Poloniex fined $ 10 million

On its website, the United States Securities and Exchange Commission (SEC) indicted the Poloniex platform for non-compliance with securities trading regulations.

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 imposed a fine of nearly $ 10 million on Poloniex. Kristina Littman, Head of the SEC’s Cyber ​​Unit, said:

“Poloniex preferred increasing its profits to complying with federal securities laws by including digital asset securities on its unregistered platform. Poloniex attempted to circumvent the SEC 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 charges, Poloniex decided to pay the fine by accepting a cease and desist order.

Clarification of Poloniex LLC

Through a tweet, the company Poloniex LLC expressed itself:

“Following the SEC 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 activities. “

Interestingly, the Poloniex company was bought by Circle in 2018 for $ 400 million. Since the end of 2019, it has been split from the company forming a new company called Polo Digital Assets.

Recently, the US platform Coinbase was also fined. Indeed, the Commodity Futures Trading Commission (CFTC) accused the exchange of having in particular artificially inflated prices and trading volumes between 2015 and 2018. In this regard, Coinbase was fined 6.5 million. dollars for market manipulation charges.

👉 To discover – Bitfinex and Tether (USDT) reach agreement with New York State and pay $ 18.5M fine

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About the Author: Anthony Bassetto

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