Last Monday, the Securities and Exchange Commission of the United States announced that the authority has finally settled $10M with Poloniex Exchange, according to Poloniex review reports. Poloniex has moved out of the cryptocurrency exchange industry of the US and branched out into a different company called Circle. The company, Circle, known for the successful launch of the USDC stablecoin, purchased Poloniex Exchange for $400M almost a year ago. However, the company has sold Poloniex Exchange at a loss of nearly $157 million. The charges against Poloniex Exchange by the SEC constituted that the exchange forum was not registered as a securities exchange of the nation with the SEC. The SEC alleged that the online platform for trading and investment in digital assets, Poloniex Exchange, was operating illegally in the country.
The SEC added that Poloniex ignored the repeated orders for registration and refused to comply with the regulations set by the federal authorities of the US to rake in extra profits by enabling trade and investment in digital assets and securities at the unregistered exchange. According to the Chief of the Cyber Unit of SEC Enforcement Division, Kristina Littman, Poloniex Exchange bypassed the regulations of the SEC, which apply to every marketplace dealing in assets and securities of any technology. Gary Gensler, the new Chairman of the SEC, said that cryptocurrencies could be categorized as securities. The settlement between Poloniex Exchange and the SEC strengthened the recognition of cryptocurrencies as digital securities.
The exchange forum of Poloniex had to pay $10.4M to settle the allegation of running the business as an unregistered crypto exchange forum. Poloniex infringed the investor-protection regulations of the US by not licensing its platform to the SEC. The employees of the exchange forum sought to be aggressive about trading and investing in crypto assets despite the uncertainty of their legal status.
Established in 2014, the platform of Poloniex Exchange received the settlement order from the SEC from Gary Gensler, the Chairman of the SEC. He is dedicated to the supervision of the cryptocurrency sector of the US. Gensler is working on providing the organization of the SEC with more authority to police the crypto trading platforms of the US to do away with fraudulence and investor risks.