In a settlement over sanctions violations, cryptocurrency exchange Poloniex has consented to pay a substantial $76 million fine.
Poloniex To Pay $76 Million Fine for Sanctions Violation Charges
In a settlement over sanctions violations, cryptocurrency exchange Poloniex has consented to pay a substantial $76 million fine. The US Treasury Department's Office of Foreign Assets Control (OFAC) accused Poloniex of permitting individuals from sanctioned nations to engage in transactions on its platform, which contravenes US economic sanctions.
OFAC claims that Poloniex neglected to establish sufficient compliance measures, thereby enabling users in countries like Iran, North Korea and Syria to access its services. The exchange is believed to have processed approximately 22,000 transactions involving these sanctioned regions between 2015 and 2019. As part of the settlement, Poloniex neither admitted nor denied the allegations, but has agreed to pay the penalty and enhance its compliance processes.
This settlement underscores the critical need for cryptocurrency exchanges to adhere to regulatory demands and implement robust compliance measures. The US government remains vigilant in enforcing economic sanctions and scrutinizing digital asset platforms for potential violations. The Poloniex case serves as a cautionary tale for exchanges to uphold strict compliance standards to evade penalties and preserve the industry's integrity.
