Cryptodetective blank
  • Cryptocurrency News
    • Bitcoin News
    • Ethereum
      • Ethereum 2.0
    • Ripple
    • Solana
    • Shiba Inu
    • VeChain
    • Polygon
    • Stablecoin
  • Exchange News
    • Binance News
  • Finance News
    • Government and Regulations News
  • Cryptocurrency Market Analysis
  • Finance News
  • NFT News
  • Crypto explained
  • Knowledge Base
Reading: Millions in fines for cryptocurrency exchange owned by Tron founder Justin Sun
Share
  • bitcoinBitcoin(BTC)$25,574.00-3.60%
  • ethereumEthereum(ETH)$1,752.33-4.73%
  • USDEXUSDEX(USDEX)$1.07-0.94%
  • tetherTether(USDT)$1.000.10%
  • binancecoinBNB(BNB)$233.73-9.97%
  • usd-coinUSD Coin(USDC)$1.000.11%
  • rippleXRP(XRP)$0.485675-7.39%
  • staked-etherLido Staked Ether(STETH)$1,749.54-4.91%
  • dogecoinDogecoin(DOGE)$0.059570-12.20%
  • cardanoCardano(ADA)$0.238046-24.85%
CryptodetectiveCryptodetective
Aa
  • Cryptocurrency News
  • Exchange News
  • Finance News
  • Cryptocurrency Market Analysis
  • Finance News
  • NFT News
  • Crypto explained
  • Knowledge Base
Search
  • Cryptocurrency News
    • Bitcoin News
    • Ethereum
    • Ripple
    • Solana
    • Shiba Inu
    • VeChain
    • Polygon
    • Stablecoin
  • Exchange News
    • Binance News
  • Finance News
    • Government and Regulations News
  • Cryptocurrency Market Analysis
  • Finance News
  • NFT News
  • Crypto explained
  • Knowledge Base
Have an existing account? Sign In
Follow US
Copyright © 2023 Cryptodetective.net. All rights reserved.
Millions in fines for cryptocurrency exchange owned by Tron founder Justin Sun
Cryptodetective > Blog > News > Millions in fines for cryptocurrency exchange owned by Tron founder Justin Sun
News

Millions in fines for cryptocurrency exchange owned by Tron founder Justin Sun

crypto
Last updated: 2023/05/05 at 9:53 AM
crypto Published May 5, 2023
Share

# Poloniex to Pay $7.59 Million in Sanctions Violations: A Look at the Case

Cryptocurrency exchange company Poloniex has recently received a penalty from the Office of Foreign Asset Control (OFAC) of the US Treasury Department. The company has been accused of violating several foreign sanctions, and the IRS has issued a fine of $7.59 million. In this article, we will take a closer look at the issue, its implications and how it affects the wider cryptocurrency market.

## What Happened?

According to the OFAC, Poloniex was involved in almost 66,000 violations of various international sanctions programs. The sanctions were aimed at countries such as Cuba, Iran, Sudan, Syria, and the Crimea. The company was accused of facilitating customer trades from these countries without proper compliance and due diligence checks. It was also disclosed that these trades amounted to nearly $15 million.

- Advertisement -

Poloniex has been in operation since 2014, but it was only in 2015 that the company launched a program aimed at complying with international sanctions. This program, however, did not have a retrospective application, meaning that customers from sanctioned countries could still use Poloniex without facing any restrictions.

## Penalties Imposed

The OFAC has imposed a hefty fine of $7.59 million on Poloniex for its violations. Though the fine may not appear large compared to the total volume of sanctioned trades, it still constitutes a significant sum of money. This penalty may set a precedent for the crypto industry, as more regulatory agencies can follow suit if they perceive that exchanges are not strictly complying with international sanctions.

## Insufficient Efforts

While Poloniex made efforts to identify and limit accounts related to different sanctioned countries, these were deemed insufficient by the OFAC. Despite the exchange’s measures to comply with its obligations, it continued to attract customers from these regions for cryptocurrency trading. This incidence highlights the importance of compliance checks and the need for exchanges to take proactive measures to identify and limit the activities of customers who are suspected of violating sanctions.

- Advertisement -

## Poloniex’s Ownership

Currently, Poloniex is owned by a consortium of companies supported by Justin Sun, the founder of Tron (TRX). Prior to this, the US-based cryptocurrency firm Circle owned Poloniex. The exchange has not issued an official statement addressing the fine.

## Conclusion

- Advertisement -

The Poloniex case reinforces the need for crypto exchanges to comply with international sanctions, and to take strict measures to limit their customers’ activities. As more regulatory bodies monitor the crypto space, it is essential for exchanges to comply with any imposed regulations and avoid hefty penalties. Ultimately, it is necessary for the crypto industry as a whole to maintain a positive track record of compliance to achieve greater adoption and recognition.

You Might Also Like

North Korea probably behind major crypto wallet hack.

New crypto regulations in the US are much needed, but could take years to implement.

Bitcoin payments now possible everywhere in the Netherlands; here’s how it works.

Analyst says Bitcoin price could soar like a strong spring to $110k.

Cardano founder responds to severe criticism from the community.

Stay informed with the latest Crypto News

Sign Up for Our Newsletter Today!

By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
Share This Article
Twitter Whatsapp Whatsapp Reddit Telegram Email Copy Link Print
Share
Unveil Your Crypto-Clues: Express with Emojis!
Joy0
Surprise0
Embarrass0
Sad0
Cry0
Angry0
Sleepy0
Dead0
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Stay connected

Follow us on Social Media
1.2k Followers Follow
Telegram Follow

Stay Informed with the Latest Crypto News:

Sign Up for Our Newsletter Today!

Popular News
Victims of Voyager's Billion-Dollar Loss to Receive Some Crypto in Return
Victims of Voyager’s Billion-Dollar Loss to Receive Some Crypto in Return
Revealed: Is Blockchain the Future of Travel and Aviation?
Revealed: Is Blockchain the Future of Travel and Aviation?
Major crypto exchange receives support in important legal case.
Major crypto exchange receives support in important legal case.

Follow Us on Socials

We use social media to react to breaking news, update supporters and share information

Twitter Telegram
Cryptodetective blank

Stay one step ahead of the game with CryptoDetective.net - Your trusted source for all things crypto. From the latest news and trends to expert analysis and insights, we've got you covered.

Subscribe to our newsletter

Stay Informed with the Latest Crypto News: Sign Up for Our Newsletter Today!

Important pages

  • About cryptodetective
  • Disclaimer
  • Team
  • Privacy Policy
  • Sitemap
Copyright © 2023 Cryptodetective.net. All rights reserved.
Welcome Back!

Sign in to your account

Lost your password?