Cryptocurrency exchange Poloniex fined $10.3 million from SEC

The US Securities and Exchange Commission (SEC) has filed charges against Poloniex Exchange for operating an unregistered platform. In response to this accusation, the exchange agreed to settle with the SEC and pay a $10 million penalty.

The last cryptocurrency exchange the SEC brought charges against was Poloniex. In a statement on its official website, the institution announced that Poloniex has agreed to pay a $10 million penalty for accusing it of being an online exchange that allows the trading of unregistered digital assets.

In the SEC statement, from July 2017 until November 2019, when Poloniex sold its stock market, the company allowed the sale of digital assets containing investment contracts, and therefore securities, through its web-based trading platform, thus relinquishing the definition of “exchange” in the securities law. stated that he agreed.

It is stated that there is no case that Poloniex stock exchange, which is stated to also serve US users, is not registered with the SEC or is exempted from registration in any way, while it is stated that this is a violation of Article 5 of the securities law.

SEC also blames Poloniex employees

There was also an interesting section in the statement of the US Stock Exchange. The institution stated that Poloniex employees said in August 2017 that some digital assets that can be considered securities should also join the platform in order to have a more aggressive trade policy in the company’s internal correspondence. In July 2018, it was stated that the exchange was determined to list some digital assets that were “likely to be securities”.

“Poloniex chose to make a profit rather than complying with the regulations”

Kristina Littman, Head of the SEC Cyber ​​Enforcement Division, also said that Poloniex chose to make more profits rather than stick to compliance rules:

“Poloniex has chosen to make more profit without complying with the regulations by including the assets that are considered as securities by law on its unregistered exchange. The exchange bypassed the laws that should be in the sale of securities and stipulating the conditions for bringing buyers and sellers together.”

Poloniex, on the other hand, immediately accepted the penalty imposed with this harsh move from the SEC. The company agreed to pay a total penalty of 10 million 300 thousand dollars.

SEE ALSO; Crucial victory from Ripple over SEC: The judge accepted the request

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