UNITED STATES OF AMERICA

Before the

SECURITIES AND EXCHANGE COMMISSION

SECURITIES EXCHANGE ACT OF 1934 

Release No. 96429 / December 1, 2022

ADMINISTRATIVE PROCEEDING

File No. 3-20455

In the Matter of

Poloniex, LLC,

Respondent.

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NOTICE OF PROPOSED PLAN OF 

DISTRIBUTION AND 

OPPORTUNITY FOR COMMENT

Notice is hereby given, pursuant to Rule 1103 of the United States Securities and 

Exchange Commission’s (“Commission”) Rules on Fair Fund and Disgorgement Plans 

(“Commission’s Rules”), 17 C.F.R. § 201.1103, that the Division of Enforcement has submitted 

to the Commission a proposed plan of distribution (the “Proposed Plan”) for the distribution of 

monies paid in the above-captioned matter.

On August 9, 2021, the Commission issued an Order Instituting Cease-and-Desist 

Proceedings Pursuant to Section 21C of the Securities Exchange Act of 1934, Making Findings, 

and Imposing a Cease-and-Desist Order (the “Order”)

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against Poloniex, LLC (the 

“Respondent”). 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 $1,500,000.00 civil 

money penalty to the Commission. The Commission also created a 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 “Fair Fund”).

The Fair Fund includes the $10,388,309.10 paid by the Respondent. The assets of the 

Fair Fund are subject to the continuing jurisdiction and control of the Commission. The Fair 

Fund and has been deposited in an interest-bearing account at the U.S. Department of the 

Treasury, and any interest accrued will be added to, and become a part of, the Fair Fund.

 

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 Exchange Act Rel. No. 92607 (Aug. 9, 2021).
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OPPORTUNITY FOR COMMENT

Pursuant to this Notice, all interested persons are advised that they may obtain a copy of 

the Plan from the Commission’s public website at http://www.sec.gov/litigation/fairfundlist.htm. 

Interested persons may also obtain a written copy of the Proposed Plan by submitting a written 

request to Catherine E. Pappas, United States Securities and Exchange Commission, One Penn 

Center, 1617 JFK Blvd., Ste. 520, Philadelphia, PA 19103. All persons who desire to comment 

on the Proposed Plan may submit their comments, in writing, no later than thirty (30) days from 

the date of this Notice:

1. to the Office of the Secretary, United States Securities and Exchange 

Commission, 100 F Street, NE, Washington, DC 20549-1090;

2. by using the Commission’s Internet comment form 

(http://www.sec.gov/litigation/admin.shtml); or

3. by sending an e-mail to rule-comments@sec.gov.

Comments submitted by email or via the Commission’s website should include “Administrative 

Proceeding File No. 3-20455” in the subject line. Comments received will be publicly available. 

Persons should submit only information they wish to make publicly available.

THE PROPOSED PLAN

The Net Available Fair Fund2is comprised of the $10,388,309.10 in disgorgement, 

prejudgment interest, and civil money penalties paid by the Respondent, plus interest and income 

earned thereon, less taxes, fees, and expenses. The Proposed Plan provides for the distribution of 

the Net Available Fair Fund to investors who paid fees to transact in certain crypto assets on the 

Poloniex trading platform during the Relevant Period and suffered a Recognized Loss as 

calculated pursuant to the methodology used in the Plan of Allocation attached to the Proposed 

Plan.

For the Commission, by the Division of Enforcement, pursuant to delegated authority.3

Vanessa A. Countryman

Secretary 

 

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 All capitalized terms used herein but not defined shall have the same meanings ascribed to them in the Proposed 

Plan.

3

 17 C.F.R. § 200.30-4(a)(21)(iii).