Frequently Asked Questions
- What is this case about?
- Why did I receive a Notice?
- Who is a Preliminary Claimant?
- What are Crypto Assets?
- Who is eligible to participate in the Poloniex Fair Fund?
- Who is excluded from participating in the Poloniex Fair Fund?
- What is the amount of the Poloniex Fair Fund?
- What do I need to do to participate in the Poloniex Fair Fund?
- Who is the Fund Administrator?
- How do I get more information or contact the Fund Administrator?
- What is this case about?
On August 9, 2021, the Commission issued an Order instituting Administrative and Cease-and-Desist Proceedings (the "Order") against Poloniex, LLC ("Poloniex Fair Fund"). In the Order, the Commission found that, from July 2017 through November 2019, Poloniex operated a digital asset trading platform that meets the definition of an “exchange” under the federal securities laws but did not register as a national securities exchange nor operate pursuant to an exemption from registration at any time, in violation of Section 5 of the Securities Exchange Act of 1934. The Commission ordered the Respondent to pay $8,484,313.99 in disgorgement, $403,995.12 in prejudgment interest, and a $1,500,000 civil money penalty to the Commission. The Commission also created the Poloniex Fair Fund pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, so the penalty paid, along with the disgorgement and prejudgment interest paid, can be distributed to harmed investors. You can see a copy of the Order on the website for this matter: www.poloniexfairfund.com.. The Commission created the Poloniex Fair Fund, pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, so the penalty paid, along with the disgorgement and interest paid, can be distributed to harmed investors. The Respondent has paid a total of $10,388,309.10. The Fair Fund has been deposited at the United States Department of the Treasury and any accrued interest will be added to the Fair Fund.
Top - Why did I receive a Notice?
You received a Notice because you were identified as a preliminary claimant who may have been harmed by the Respondent’s operation of an unregistered national securities exchange in connection with Crypto assets in Poloniex, LLC during the Relevant Period.
Top - Who is a Preliminary Claimant?
A Preliminary Claimant is a Person who suffered a Recognized Loss of $8.00 or more as a result of fees paid to transact in the Crypto Assets on the Poloniex trading platform during the Relevant Period, as calculated pursuant to the Plan of Allocation (Exhibit A to the Plan).
Top - What are Crypto Assets?
Crypto assets means the assets that were listed on the Poloniex platform under the following symbols during the Relevant Period: NAUT, NOTE, SJCX, BELA, BCY, FLDC, FLO, PINK, RADS, BLK, NXC, RIC, XVC, BTCD, BTM, EMC2, GRC, POT, VRC, XBC, NEOS, AMP, EXP, GNO, BCN, GAME, NXT, DCR, GAS, LSK, OMNI, REP, and ARDR.
Top - Who is eligible to participate in the Poloniex Fair Fund?
In order to be considered for eligibility to receive a Distribution Payment under the Plan, you must access the Fair Fund’s website and complete the online Preliminary Claimant Certification Form with the claim number and pin supplied in your Notice. All submissions must be received by October 31, 2023 at 11:59pm PST in order to participate. If you are unable to access the online Preliminary Claimant Certification Form or would prefer to submit a paper copy of the certification form, please immediately contact the Fund Administrator by phone at 1-844-737-0141 or by email to [email protected]. A paper copy of the certification form will be provided upon request. Please note that paper submissions must be received by the Fund Administrator by October 31, 2023, in order to be considered.
Top - Who is excluded from participating in the Poloniex Fair Fund?
Excluded from the Poloniex Fund are:
(a) The Respondent;
(b) Present or former officers or directors of Respondent or any assigns, creditors, heirs, spouses, parents, dependent children or controlled entities of any of the foregoing Persons or entities;
(c) Any employee or former employee of the Respondent or any of its affiliates who has been terminated for cause or has otherwise resigned, in connection with the conduct described in the Order;
(d) Any firm, trust, corporation, or other entity in which Respondent has or had a controlling interest;
(e) The Fund Administrator, its employees, and those Persons assisting the Fund Administrator in its role as the Fund Administrator;
(f) Any purchaser or assignee of another Person’s claimed right to obtain a recovery from the Fair Fund for value; provided, however, that this provision shall not be construed to exclude those Persons who obtained such a right by gift, inheritance, or devise; and
(g) Any person who is confirmed by the Fund Administrator to be subject to sanctions by the United States government, as determined by Executive Orders, the authority of the Department of the Treasury’s Office of Foreign Asset Control (OFAC) or any other applicable laws of the United States.
Top - What is the amount of the Poloniex Fair Fund?
Poloniex Fair Fund currently holds approximately $ 10,388,309.10, composed of $8,484,313.99 in disgorgement, $403,995.12 in prejudgment interest, a $1,500,000 civil money penalty, and accrued interest.
Top - What do I need to do to participate in the Poloniex Fair Fund?
In order to be considered for eligibility to receive a Distribution Payment under the approved distribution plan, you must access the Fair Fund’s website and complete the online Preliminary Claimant Certification Form with the claim number and pin supplied in your notice. All submissions must be received by October 31, 2023 at 11:59pm PST in order to participate. If you are unable to access the online Preliminary Claimant Certification Form or would prefer to submit a paper copy of the certification form, please immediately contact the Fund Administrator by phone at 1-844-737-0141 or by email to [email protected]. A paper copy of the certification form will be provided upon request. Please note that paper submissions must be received by the Fund Administrator by October 31, 2023, in order to be considered. A Preliminary Claimant, as that term is defined in the approved Distribution Plan, whose address the Fund Administrator has not been able to verify and/or who does not timely respond to the Fund Administrator’s attempts to obtain information, including any information sought in the Plan Notice shall be deemed as unresponsive. Unresponsive Preliminary Claimants will not be eligible for a distribution under the approved distribution plan.
Top - Who is the Fund Administrator?
The Commission appointed Kurtzman Carson Consultants, LLC, as the fund administrator for the Poloniex Fair Fund on June 28, 2022. The Fund Administrator will be responsible for administering the Fair Fund in accordance with the approved distribution plan.
Top - How do I get more information or contact the Fund Administrator?
Additional information regarding the Poloniex Fair Fund may be found on this website. You may also call the toll-free number 1- 844-737-0141 to ask questions or to update your address, or you may email the Fund Administrator at [email protected]. If you would like to get copies of the relevant documents, including the Plan of Distribution, please visit the Case Documents tab on this website.
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