UNITED STATES OF AMERICA

Before the

SECURITIES AND EXCHANGE COMMISSION

SECURITIES EXCHANGE ACT OF 1934 

Release No. 95172 / June 28, 2022

ADMINISTRATIVE PROCEEDING

File No. 3-20455

In the Matter of

Poloniex, LLC,

Respondent.

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ORDER REMOVING AND 

APPOINTING FUND 

ADMINISTRATOR, SETTING 

BOND, AND RELATED RELIEF

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”)1against 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. The Commission found that Poloniex 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 

 

1

 Exchange Act Rel. No. 92607 (Aug. 9, 2021).
2

penalty paid, along with the disgorgement and interest paid, can be distributed to harmed 

investors (the “Fair Fund”).

The Fair Fund consists of the $10,388,309.10 paid by the Respondent. The Fair Fund has 

been deposited in an interest-bearing account at the U.S. Department of the Treasury’s Bureau of 

the Fiscal Service, and any accrued interest will be for the benefit of the Fair Fund.

On November 22, 2021, the Division of Enforcement (the “Division”), pursuant to 

delegated authority, issued an order appointing DST Asset Manager Solutions, Inc. (“DST”) as 

the fund administrator for the Fair Fund to administer a distribution without a claims process, 

and set the administrator’s bond at $10,388,309.10 (the “Appointment Order”).

2 Since the 

issuance of the Appointment Order, the scope of the engagement has changed to require that the 

fund administrator administer a claims process in connection with the distribution of the Fair 

Fund. DST’s appointment was based on the original scope of the engagement and DST has 

informed the Commission staff that it is unable to participate in an engagement requiring a 

claims process. 

Pursuant to Rule 1105(a) of the Commission’s Rules on Fair Fund and Disgorgement 

Plans (the “Commission’s Rules”), the Commission may order the removal of an administrator at 

any time. The Division requests the removal of DST, the cancellation of its bond, and the 

appointment of KCC Class Action Services, LLC (“KCC”) to replace DST as the fund 

administrator. In accordance with Commission Rule 1105(c), KCC will obtain a bond in the 

amount of $10,388,309.10. KCC is included in the Commission’s approved pool of 

administrators.

 

2

 Exchange Act Rel. No. 93634 (Nov. 22, 2021).
3

Accordingly, IT IS HEREBY ORDERED that pursuant to Rules 1105(a) and (c) of the 

Commission’s Rules:

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A. The Fund Administrator, DST, is removed as the administrator of the Fair Fund

and its bond canceled;

B. DST shall return to the Fair Fund any bond premium refunded on the canceled 

bond pursuant to directions provided by the Commission staff; and

C. KCC is appointed as the fund administrator and shall obtain a bond in accordance 

with Commission Rule 1105(c)4in the amount of $10,388,309.10.

By the Commission.

Vanessa A. Countryman

Secretary 

 

3

 17 C.F.R. § 201.1105(a), (c).

4

 17 C.F.R. § 201.1105(c).