Between 2014 and 2019, Poloniex allegedly failed to maintain proper know-your-customer practises.
Poloniex LLC, a U.S. corporation previously linked with the Poloniex crypto exchange, will pay $7.59 million to settle sanctions violations accusations with the U.S.
Treasury Department’s Office of Foreign Asset Control (OFAC), the sanctions watchdog announced Monday.
According to a press release from OFAC, the site had over 66,000 violations of multiple sanctions programmes, allowing customers from Crimea, Cuba, Iran, Sudan, and Syria to trade up to a total of $15 million between January 2014 and November 2019.
The Poloniex exchange is now held by a group of organisations that includes Tron creator Justin Sun. Prior to that, the U.S. crypto company Circle briefly owned Poloniex before selling it after less than two years.
Poloniex LLC looks to be the sole legal organisation operating in the United States following the sale of the exchange firm.
Last year, Poloniex and Huobi, another cryptocurrency exchange, established a “strategic alliance” to promote Huobi Token “ecosystem development.” Sun is also a Huobi adviser.
Circle and Poloniex both worked with OFAC, which was another plus for the trade, according to OFAC.
