Crypto Exchange Poloniex To Pay $ 10 Million To Settle SEC Probe

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WASHINGTON An unregulated cryptocurrency exchange whose employees have said they want to be aggressive in trading digital assets, even though their legal status is uncertain, has agreed to pay $ 10 million to settle a regulatory investigation.

Poloniex LLC has violated investor protection laws by not registering its transactions with federal regulators, the Securities and Exchange Commission said on Monday. The Boston-based company allowed users to trade digital assets that were unregistered securities from 2017 to 2019, according to the SEC.

Poloniex agreed to settle the SEC investigation without admitting or denying the allegations. A lawyer for the company and a spokesperson for the company that previously owned it, Circle Internet Financial Ltd., did not immediately return the messages seeking comment.

The SEC recently pledged to be accountable to a crypto industry that President Gary Gensler this month called the Wild West. Mr Gensler said last week that crypto exchanges should consult the SEC on whether the assets they trade are considered securities and therefore should be registered with the market regulator.

The start of the SEC’s investigation into Poloniex preceded Mr. Gensler’s remarks. Agency law enforcement investigations typically take between one and two years.

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