The US Securities and Exchange Commission (SEC) has fined Poloniex for $10 million for operating an unregistered cryptocurrency exchange. According to a press release, the exchange 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.
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"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," the SEC said.
According to Kristina Littman, Chief of the SEC Enforcement Division's Cyber Unit, the exchange chose increased profits "over complying with the federal securities laws by including digital asset securities on its unregistered exchange." The penalty comes after the Ontario Securities Commission (OSC) filed a lawsuit against Poloniex. The regulator accused the company of trading derivatives and unregistered shares.
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