Millions fine for crypto exchange from Tron founder Justin Sun

It seems crypto exchange Poloniex is in trouble in the United States. A US entity of the exchange platform Poloniex must transfer an amount of $ 7.59 million to reach a settlement with the Office of Foreign Asset Control (OFAC) of the US Treasury Department. The sanctions watchdog announced this on Monday through a press release.

What happened?

Poloniex is said to have nearly 66,000 violations of various sanctions programs to his name. Including helping clients from Crimea, Cuba, Iran, Sudan and Syria between January 2014 and November 2019, who collectively traded up to $15 million, the OFAC said in a press release.

In itself, that doesn’t seem like a huge amount, compared to the $ 7.59 million it has to pay to the watchdog. The difference between those amounts is very small. A fine of almost 8 million dollars for a volume of 15 million dollars can be called considerable.

Although Poloniex started operating in January 2014, it did not have an international sanctions compliance program until May 2015. The compliance program also did not work retroactively, so customers from sanctioned jurisdictions simply sit quietly with Poloniex.

Efforts not enough

Poloniex did indeed try to identify and limit accounts related to Iran, Cuba, Sudan, Crimea and Syria, but it nevertheless continued to lure clients from these regions to use the trading platform for transactions involving digital assets, as of late the OFAC know.

Currently, the exchange platform Poloniex is owned by a consortium of entities, which is supported by, among others, Tron (TRX) founder Justin Sun. Prior to that, US crypto company Circle briefly owned Poloniex. You may know Circle from the USD Coin (USDC), the stablecoin that is in second place behind Tether.

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At the moment there is no official response from Poloniex, but it seems that the whole case has finally been settled with the fine of more than 7 million dollars.

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