Poloniex fined $7.6 million for sanctions violations

Justin Sun-owned exchange Poloniex has reached a $7.6 million settlement with the Office of Foreign Assets Control (OFAC) for an alleged violation of the sanctions.

OFAC imposes sanctions against some countries for certain national security objectives. There is a ban on doing business or providing services to nationals of sanctioned countries.

OFAC charged Poloniex with 65,942 sanctions violations

Office of Foreign Assets Control notice It was stated that Poloniex facilitated 65,942 transactions that violated the sanctions, between July 28, 2015, and September 2, 2019.

The total value of all transactions amounted to about $15.3 million from customers residing in the sanctioned countries, namely Crimea, Cuba, Iran, Sudan and Syria.

Notice text:

Poloniex has transferred an economic benefit to 232 people in multiple OFAC sanctioned jurisdictions, thereby damaging the integrity of multiple OFAC sanctions programs.

Furthermore, OFAC claims that Poloniex operated without a sanctions compliance program from January 2014 to May 2015. The regulator also claimed that there were inconsistencies, even after the cryptocurrency exchange adopted the sanctions compliance program.

In November last year, BeInCrypto reported that the Office of Foreign Assets Control (OFAC) had fined Kraken Exchange for similar violations. Kraken had to pay more than $360,000 to settle apparent violations of sanctions against Iran.

OFAC also sanctioned two Russians in 2020 for stealing $17 million in cryptocurrency by mimicking major cryptocurrency exchanges like Gemini, Poloniex, Bittrex, and others.

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