Justin Sun’s Poloniex Exchange Lands in UK FCA Warning List

Poloniex is the latest crypto-native company to land on the UK finance watchdog’s warning list.

Justin Sun floating around in space on a cartoon safe, as a hand from earth pointing at him.
Created by Gabor Kovacs from DailyCoin
  • Poloniex exchange has been added to the UK warning list.
  • This is the second time a company affiliated with Justin Sun has made it to the list.
  • The regulator urged users to avoid the company.

The United Kingdom finance watchdog has added Justin Sun’s crypto exchange, Poloniex, to its warning list and urged users to avoid dealing with the firm.

Launched as a centralized crypto exchange in 2014, the Seychelles-based company is among the three crypto-native firms affiliated with Tron founder Justin Sun. The exchange has suffered four exploits in the last two months, with the most recent claiming over $100 million.

UK Regulator Issues Warning Against Poloniex

On December 6, the Financial Conduct Authority (FCA) updated its warning list. It included crypto exchange Poloniex, noting that the company “may be targeting people in the UK” without the regulator’s approval.

The regulator cautioned the public that dealing with the exchange exposes them to unmitigated risks.

If you deal with this firm, you won't have access to the Financial Ombudsman Service if you have a complaint,” the FCA stated. “You also won't be protected by the Financial Services Compensation Scheme (FSCS) if things go wrong. This means it's unlikely you'd get your money back if the firm goes out of business.”

This is not the first time the UK regulator has added a company affiliated with Justin Sun to its warning list. In October, the regulator announced that 140 crypto-native companies had been added to its warning list, including KuCoin, Tether’s sister company Bitfinex, and Justin Sun’s HTX.

As for Poloniex, the exchange has also had its share of troubles with U.S. authorities.

On May 5, the exchange agreed to a $7.5 million settlement with the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) over “its potential civil liability for apparent violations of sanctions against Crimea, Cuba, Iran, Sudan, and Syria” between January 2014 and November 2019.

Read how Circle denounced ties with Justin Sun:
Circle Denounces Terror Funding Claims & Justin Sun Ties

Stay updated on Justin Sun’s recent major ETH move:
TRON Founder and Ethereum Co-Founder Conduct Major ETH Moves

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Brian Danga

Brian Danga, a Kenyan crypto reporter, is dedicated to delivering breaking news and updates from the cryptocurrency world. With a background as a Web3 writer and project manager, he recognizes the importance of unbiased reporting. Holding an LLB degree from the University of Nairobi, Brian's analytical skills contribute to his accurate news reporting. His personal interests include cooking, watching documentaries, reading, and engaging in intellectual discussions.