The U.K.’s Financial Conduct Authority (FCA) has added crypto exchange Poloniex to its warning list of non-authorized companies. The Seychelles-based exchange, owned by entrepreneur Justin Sun, has experienced four hacks in the past two months. The FCA warns that unauthorized entities cannot promote financial services in the UK and that dealing with them does not offer financial law protection.
The FCA has received 291 applications from crypto companies seeking registration since 2020, approving only 38 of them. In a recent announcement, the regulator included 140 crypto companies on its warning list, with PayPal UK being the only authorized entity. Poloniex, which suffered a $100-million hack in November, has completed most of its restoration efforts and has resumed deposit and withdrawal services for specific cryptocurrencies.
Justin Sun, the founder of Tron and owner of Poloniex and HTX, has seen his platforms targeted by four hacks in the last two months. HTX lost $8 million in September and $30 million due to a hot wallet breach in November. Additionally, HTX’s HECO Chain bridge was compromised, resulting in at least $86.6 million being sent to suspicious addresses.
The FCA’s warning to Poloniex serves as a reminder of the risks associated with dealing with unauthorized entities in the crypto industry.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Europe |
| Countries | 🇸🇨 |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | Justin Sun |
| Companies | KuCoin, Poloniex, HTX, PayPal UK, Financial Conduct Authority (FCA) |
| Currencies | JUST Stablecoin, USDC, Sun Token, JUST, BitTorrent, Tether, WINkLink, USDD, APENFT |
| Securities | None |
