Poloniex LLC agrees to pay $10 million to reach a settlement with the Settle SEC Probe

The US cryptocurrency exchange Poloniex LLC recently reached a settlement with the US Securities and Exchange Commission under the condition of paying a settlement fee of $10 million.

The willingness to pay such a high settlement fee was because Poloniex LLC was accused by the US Securities and Exchange Commission of marketing/selling unregistered securities to its investors.

The reason for further investigation is that the company did not obtain regulatory approval when it started operating, because it is illegal to sell and sell encrypted assets to users.

However, in November 2019, Poloniex LLC completed the registration and obtained a license in Montana, U.S., and became a trading institution regulated by the U.S. Securities and Exchange Commission.

It is worth noting that the settlement between the platform and the US Securities and Exchange Commission is that Poloniex LLC neither admits nor denies violations.

At the same time, the platform paid $10 million in settlement fees to the US Securities and Exchange Commission and compensation for early investors, and the establishment of a protection fund.

This may be the most enjoyable settlement fee for the US Securities and Exchange Commission because Poloniex LLC is willing to pay for the settlement in just a few days of investigation.

So far, all investigations on Poloniex LLC have been completed. Since the company has obtained the relevant license, it will not be investigated again for this matter in the future.

In addition, Poloniex LLC was acquired by Circle as early as 2018. The USDC stablecoin currently circulating in the cryptocurrency market is issued by Circle.

For Circle, the $10 million settlement fee is not too high, and the previous unlicensed operation problem is true. Paying the money now can be regarded as a solution to the worries of the future.

Via: WSJ