Without admitting or denying the SEC’s findings, Poloniex agreed to the entry of a cease-and-desist order and agreed to pay 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. The order establishes a Fair Fund for the benefit of victims.
Full Answer
Why did Poloniex pay $10 million?
The Securities and Exchange Commission today announced that Poloniex LLC has agreed to pay more than $10 million to settle charges for operating an unregistered online digital asset exchange in connection with its operation of a trading platform that facilitated buying and selling of digital asset securities.
What was Poloniex’s settlement with the SEC?
Without admitting or denying the SEC’s findings, Poloniex agreed to the entry of a cease-and-desist order and agreed to pay 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. The order establishes a Fair Fund for the benefit of victims.
Is Poloniex an “exchange?
According to the SEC’s order, the Poloniex trading platform met the criteria of an “exchange” as defined by the securities laws because the trading platform provided the non-discretionary means for trade orders to interact and execute through the combined use of the Poloniex website, an order book, and the Poloniex trading engine.
Did Poloniex violate the Exchange Act?
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.
Why did Poloniex close?
As a part of the initiative, the company decided to shut down margin trading and delist several tokens. “As part of our effort to continuously professionalize and improve Poloniex, we are delisting several assets and taking steps to remove our margin and lending products for US-based customers,” the Circle team said.
Is Poloniex regulated?
In the past, Poloniex was once regulated by the United States. However, in 2019, Poloniex headquarters moved from the U.S. to Bermuda for more regulatory flexibility. Therefore, Poloniex is currently not regulated by the U.S. government or any other regulatory body.
Who is owner of Poloniex?
Poloniex was acquired by Circle on Feb 26, 2018 .
Where is Poloniex registered?
Poloniex, LLC is incorporated in the state of Montana.
Can Poloniex be trusted?
Poloniex Overview Poloniex is one of the oldest and most trusted crypto exchanges in the industry! Founded in 2014, security, new features, and user interface are some of our top priorities.
Has Poloniex ever been hacked?
The exchange was hacked in 2014, and hackers stole approximately $4 million in assets. In response, the exchange reduced customer account balances by 12.3%. This is a serious issue and could be reason enough to avoid Poloniex. In addition, it was hacked again in 2020.
How old is Poloniex?
Launched in January 2014, Poloniex became one of the larger American cryptocurrency trading platforms. After being acquired by Circle in February 2018, Poloniex stopped serving the U.S. market and moved its legal headquarters to Bermuda 18 months later.
How big is Poloniex?
Poloniex is a cryptoasset exchange located in United States. Their volume over the last 24 hours is $19.95M.
Is Poloniex licensed?
Disclaimer: Poloniex is not a registered recognised market operator under the digital asset exchange category by the Securities Commission Malaysia, therefore they have no license to operate in Malaysia.
Where is Poloniex headquartered?
Wilmington, DelawarePoloniex is a cryptocurrency exchange for trading digital currencies. Poloniex is a cryptocurrency exchange and lending platofrm that is headquartered in Wilmington, Delaware that was founded in 2014 by Tristan D'Agosta.
How do I withdraw money from Poloniex to my bank account?
How to WithdrawTap on the Wallet > Withdraw.Select the asset you wish to withdraw.Enter the amount you wish to withdraw.Select the network you wish to withdraw with.Enter the destination address, and/or additional payment ID.Enter your login password to confirm.More items...
What countries can use Poloniex?
Poloniex customers will be able to purchase crypto using credit and debit cards through Simplex in any country besides the following countries listed: Afghanistan, American Samoa, Antarctica, Botswana, Bouvet Island, Christmas Island, Crimea, Cuba, Democratic Republic of the Congo, DPR Korea (North Korea), French, ...
Can US residents use Poloniex?
Popular cryptocurrency exchange Poloniex recently announced that it will be shutting down US operations and no longer providing services to US users.
Does Poloniex require KYC?
Some platforms like Poloniex are now starting to offer non-KYC accounts called Level 1 accounts that do not require any form of identification other than a registered email address and password.
How long does it take to withdraw from Poloniex?
The most common solution to a missing withdrawal is time – our systems usually take up to 4 hours to process withdrawals, but in other circumstances, it can take longer. We recommend waiting 12 hours before contacting our support team regarding your funds.
How do I withdraw from Poloniex?
How to WithdrawTap on the Wallet > Withdraw.Select the asset you wish to withdraw.Enter the amount you wish to withdraw.Select the network you wish to withdraw with.Enter the destination address, and/or additional payment ID.Enter your login password to confirm.More items...
Why did Poloniex stop trading?
In October 2018, Poloniex stopped offering margin trading due to U.S. laws. In May 2019, the altcoin CLAM (CLAM), which traded on Poloniex, had a price crash and led to a large loss for margin lenders.
When did Poloniex shut down?
However, in Dec. 2019, it shut down its services to U.S. users, though it’s still accessible by users outside the U.S.
How Is Poloniex Different From Binance?
Binance and Poloniex are both cryptocurrency exchanges. Binance is much larger, being the largest by volume among all exchanges. Both, however, have shut down operations in the U.S.
What is the value of Poloniex in 2021?
As of March 1, 2021, Poloniex was the 13th ranked cryptocurrency exchange by dollar-value volume, with $236 million in the previous 24-hour period. Meanwhile, Binance was number one with nearly $25 billion traded.
What is a poloniex?
Poloniex is a cryptocurrency exchange that allows for the buying or selling of digital assets, such as Bitcoin (BTC), Ethereum (ETH), TRON (TRX), and other altcoins. The exchange guarantees that users experience safety and security while transacting.
What is the IEO platform for Poloniex?
Poloniex has launched an initial exchange offering (IEO) platform to help blockchain projects grow. The IEO platform, called LaunchBase, is in partnership with Tron. LaunchBase will help promote user adoption by offering tokens and professional advice.
When was Poloniex hacked?
Poloniex was founded in 2013 and then hacked in 2014, losing over 12% of its customers' Bitcoin holdings. In the following years, various issues were raised. In 2017, for instance, rumors circulated among users that Poloniex was experiencing insolvency. It was reported that at least one user experienced a significant personal financial loss as ...
What is margin trading in Poloniex?
The Poloniex margin and lending platforms are peer to peer networks, allowing customers to lend coins for other customers to use when margin trading. Lending rates are determined by what the lenders are willing to loan their funds at. Once offered, they are matched with borrowers who have set the same desired interest rate on said funds.
What is a settlement trade?
A settlement trade is a margin trade that is made on your behalf. The revenue generated from settlement trades are used to repay outstanding debts through the lifetime of the position, or during the closure of a position. Common settlement trades include loan interest repayment to lenders.
What happens if you don't hold the correct currency to repay your lenders?
This means that if you do not hold the correct currency to repay your lenders, your collateral will be sold in a settlement trade and the revenue will be used to repay the lenders.
How long does it take to earn passive interest on a coin?
You will set a daily interest rate, an amount to lend and a duration for the loan spanning between 2-60 days.
