FCA warns users against Sun’s Poloniex

Seychelles based crypto exchange Poloniex is added to the list of non-authorised companies set out by the Financial Conduct Authority (FCA) in the United Kingdom. The exchange is one of three companies affiliated with Justin Sun, also one that has suffered from an attack.

The FCA published a warning regarding Poloniex’s operations, saying “this firm may be promoting financial services or products without our permission. You should avoid dealing with this firm.” While the financial authority doesn’t offer a rationale foe the warning, it notes that it is “ot authorised” and “may be targeting people in the UK.”

In the FCA’s warning, it also notes that there won’t be the access to the Financial Ombudsman Service nor protection of the Financial Services Compensation Scheme (FSCS) if something goes awry, which could refer to an attack or if the firm goes out of business.

In early November, Poloniex suffered an attack that saw hackers take $100-million in investor funds. According to the exchange, the restorations to come back from the hack are almost complete. Withdrawals and deposits were suspended, and the exchange was preparing to resume operations at the end of November.

Poloniex resumed operations in the first week of December. These, however, are only for specific cryptocurrencies via the Tron network, including Tether, BitTorrent, Sun Token, Just, Just Stablecoin and USD Coin.

Justin Sun’s exchange attacks

In September, Sun’s exchange HTX (formerly Huobi) faced an $8 million attack with $30 million lost in a hot wallet breach just a few months later.

HTX’s Heco Chain Bridge, a gateway to transfer assets between the exchange and other networks, was vulnerable to hackers and $86.6 million in assets was sent to suspected malicious addresses.

Companies that are legally operated, approved by the UK FCA

The FCA has received 291 applications from cryptocurrency firms looking to register. Of those, only 38 have been approved. In contrast, October saw 140 firms – including HTX – placed on the warning list.


Related Articles

Opera Mini’s Crypto Wallet MiniPay Expands to Include USDT and USDC

Opera Mini's MiniPay app, which was upgraded to a crypto wallet, has amassed three million users since its launch in September 2023.

Deutsche Telekom Joins Subsquid Decentralised Network

Deutsche Telekom’s collaboration with Subsquid follows its recent announcement to expand into BTC mining at the BTC Prague conference.

The Bahamas Pushes Banks to Adopt Sand Dollar CBDC

The Bahamas was one of the first countries in the world to launch a central bank digital currency — the “Sand Dollar” in 2020.

Crypto ATMs Near Record in Installations, Signalling Growing Adoption

The 2,564 cryptocurrency ATMs installed in 2024 are on track to surpass the 2,861 machines removed in 2023.

See All