Bittrex Crypto Exchange was occupied by a fine of $ 30 million due to violation of US sanctions
Bittrex Crypto Exchange was occupied by a fine of $ 30 million due to violation of US sanctions
- The comparison is the largest enforcement measure of the OFAC against a crypto company
- fincen imposed a separate fine for violations of the Banking Security Act
The Bittrex cryptocurrency exchange agreed to pay the US Ministry of Finance a record penalty of $ 24.3 million due to alleged violation of several US sanctions.
This is the greatest punishment of the Federal Authority for a crypto company due to sanction violations.
The company in Bellevue, Washington, resident companies processed according to A Awarding on Tuesday.
Since Bittrex is based in the USA, he is prohibited from doing business with users in these jurisdiction due to applicable sanctions.
"Based on internet protocol address information and physical address information that was collected about every customer during onboarding, Bittrex had reason to assume that these users were in jurisdiction, the sanctions," said the finance and added that the stock exchange did not search for this information in connection with sanctioned jurisdiction.
fincen imposed separate fine for violations of the Banking Secretary Act
Both the Office of Foreign Assets Control (OFAC) of the Ministry of Finance as well as the Financial Crimes Enforcement Network (fincen) imposed on Bittrex fines of around $ 24 million and $ 29 million. The latter punishment was created due to violations of the banking secret law, since Bittrex had failed to implement an effective anti-money laundering program.
"Virtual currency exchanges working worldwide should understand who-and where-their customers are," said OFAC director Andrea Gacki in an explanation.
"Ofac will continue to be responsible for companies in the virtual currency industry and elsewhere, whose failure to implement appropriate controls, leads to violations of sanctions."
The US authorities have strengthened their efforts to punish crypto companies that either offer non-registered securities or exceed the powers. In August, the OFAC sanctioned the big web3 mixing service Tornado Cash and found that the service was used by the North Korean state-funded hacking group Lazarus to steal almost $ 455 million in ether.
Bittrex did not answer the request from Blockworks for comment until the editorial deadline.
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The contribution Bittrex Crypto Exchange was occupied by a fine of $ 30 million due to violation of US sanctions and is not financial advice.