Crypto exchange Poloniex has been ordered by the US Treasury Department’s Office of Foreign Assets Control (OFAC) to pay a massive $7.6 million fine. The company had engaged with over 200 clients across a range of sanctioned areas, violating US restrictions.
Read CRYPTONEWSLAND onBetween July 2015 and September 2019, Poloniex’s inadequate compliance measures resulted in almost 66,000 digital asset-related transactions from customers in sanctioned territories. These transactions, valued at over $15 million, involved countries such as Ukraine’s Crimea region, Cuba, Iran, Sudan, and Syria.
Despite having knowledge of customer locations, Poloniex still conducted business with these clients. OFAC noted that the company’s sanctions compliance program, established in May 2015, did not cover existing customers in sanctioned regions.
It wasn’t until June 2017 that Poloniex began blocking customers from restricted areas. Moreover, customers in Crimea were not blocked until August 2017, leading to over 57,000 apparent violations.
Despite efforts to limit access from sanctioned jurisdictions, some clients in those areas remained unblocked, continuing to use the platform. Circle Internet Financial Limited (CIFL) acquired Poloniex in February 2018 and introduced additional compliance measures.
However, some violations persisted until November 2019, when Poloniex was sold to another party. The platform currently has no employees or operations.
OFAC determined the settlement amount based on the harm Poloniex caused to the integrity of various US sanctions programs. The company did not voluntarily self-disclose the violations, and most transactions involved small amounts of money.
This case emphasizes that online digital asset companies, like all financial service providers, must comply with OFAC sanctions to avoid penalties.
Elon Musk's AI chatbot, Grok, collaborates with social media giant X to revolutionize news consumption…
🚀 Unlocking Potential: May 2024's Top Crypto Gems Revealed! 🔍 Discover the latest trends in…
🚀 Pantera Capital's investment in TON ignites crypto surge 🔥. With 900M users on board,…
⚠️ Beware of impersonation scams targeting Shiba Inu community members! Scammers are mimicking developers on…
🚀 Exploring the Billion-Dollar World of Content Creation Crypto Tokens in 2024! From ApeCoin to…
With the bull run of 2024 unfolding, the market is abuzz with anticipation for which…