poloniex-on-a-settlement-of-more-than-10-million »> SEC has agreed to a settlement worth more than $ 10 million with cryptocurrency exchange Poloniex.
Securities and Exchange Commission (SEC) announced that Poloniex LLC accepted a settlement after being accused of operating an unregistered digital asset exchange. A press release from the agency. states that Poloniex has helped facilitate the purchase, sale and exchange of digital assets. SEC says that because the assets were investment contracts, they fall into the category of securities. stablecoin issuer Circle eventually bought Poloniex in
SEC order states that the Poloniex trading platform has met the prerequisite to be labeled as an exchange by providing nondiscretionary means for the interaction and execution of trade orders. “ ordinance notes that despite its operation of the Poloniex trading platform, which was available to US investors, Poloniex was not registered as a national stock exchange or operated under a registration exemption at any time, and its breach was a violation of Section 5 of the Exchange Law «.
According to Kristina Littman, head of the SEC’s Compliance Division’s Cyber Unit, “Poloniex has chosen to increase earnings on compliance with federal securities laws by listing digital asset values on its unregistered exchange. Poloniex has tried to evade the regime. SEC, which applies to any market to bring together buyers and sellers of securities, regardless of the technology applied.
Read also Kraken receives a fine of 1.25 million dollars for illegal offers
Poloniex accepted the termination and withdrawal order and the refund of $ 8,484,313 along with a preventive interest of $ 403,995 and a penalty of $ 1.5 million. Between salary compensation and penalties, Poloniex has a balance of $ 10,988,309. SEC established a Fair Finding to distribute the refund and penalties to defrauded investors. Poloniex has neither admitted nor denied the wrongdoing in the SEC settlement.
Poloniex faces similar problems in Canada
US SEC is not the only government agency with issues related to Poloniex and its regulatory compliance. In May 2021, the Ontario Securities and Exchange Commission (OSC) also issued a notice regarding Poloniex’s violation of securities laws and other violations. notice came after Poloniex failed to comply with orders to speak with the agency before April 19 and because the company had accounts for residents in the region and did business with Canadians.
A follow-up call was held between Poloniex and OSC in June, with another scheduled for October to determine the future of Polo Digital Assets in Ontario.
Poloniex news comes days after the SEC announced it had filed and resolved its first securities and DeFi case after arresting a pair of Floridians. SEC said the couple illegally obtained $ 30 million by falsifying statements and defrauding investors.
Disclaimer
All information on our website is published in good faith and for general information purposes only. Any action taken by the reader on the information found on our website is strictly at your own risk.
Read also Polygon begins its foray into ZK with the merger of the $ 250 million Hermez network
Source link
more
