• Poloniex Exchange has reached a settlement with the US Treasury Department’s Office of Foreign Asset Control (OFAC) for violating multiple sanctions programs.
• The apparent violations could be traced back to when Poloniex Inc. registered in January 2014 and launched an online trading and settlement platform.
• Poloniex was required to pay $7,591,630 as settlement for its apparent violations of US multiple sanction programs between January 2014 and November 2019.
Poloniex Exchange Under Scrutiny
Poloniex Exchange, a well-established player in the cryptocurrency exchange space, has come under scrutiny for violating multiple sanctions programs.
Settlement with OFAC
The United States Treasury Department’s Office of Foreign Asset Control (OFAC) has reached a settlement with Poloniex Exchange. The reported violation of multiple sanctions could be traced back to January 2014 when Poloniex Inc., registered then, operated an online trading and settlement platform.
Payment Required for Violations
Recent reports from the Department of Treasury state that Poloniex is settling 65,942 apparent violations of multiple sanctions programs by being required to pay $7,591,630 as settlement for its apparent violations of US multiple sanction programs from when it started trading operations in January 2014 till November 2019.
KYC & Sanctions Compliance Program
At the time of its trading platform launch in 2014, it was reported that the Poloniex had no KYC (know your customer) process or sanctions compliance program for its users but this changed in May 2015 when the exchange established a sanctions compliance program and KYC to verify supported users according to US laws.