{"id":406308,"date":"2019-12-05T17:00:58","date_gmt":"2019-12-05T17:00:58","guid":{"rendered":"https:\/\/ktsl888.com\/?p=406308"},"modified":"2019-12-05T16:30:59","modified_gmt":"2019-12-05T16:30:59","slug":"crypto-exchange-catastrophe-poloniex-spin-out-leaves-investments-spinning-at-circle","status":"publish","type":"post","link":"https:\/\/ktsl888.com\/news\/crypto-exchange-catastrophe-poloniex-spin-out-leaves-investments-spinning-at-circle\/","title":{"rendered":"Crypto Exchange Catastrophe: Poloniex Spin Out Leaves Investments Spinning At Circle"},"content":{"rendered":"

This past October, the Boston-based, Goldman Sachs-backed financial services company Circle, announced that it would \u201cspin out\u201d crypto exchange Poloniex<\/a> into its own company, selling it to an investment group with backing from Tron founder Justin Sun.<\/span><\/p>\n

Since the spin-out, the two brands have seemingly spun out of control, with Poloniex causing a stir surrounding the brand\u2019s integrity, and Circle<\/a> threatening to either turn investor\u2019s assets over to the government, or charge fees for leaving assets on the platform.<\/span><\/p>\n

Circle Could Charge Dormancy Fee, or Turn Crypto Assets Over to US Government<\/h2>\n
One of the bigger news stories of early 2018, was the Goldman Sachs-backed Circle buying cryptocurrency exchange Poloniex for $400 million, in an effort to tap into the emerging fintech industry.<\/span><\/p>\n
Related Reading | <\/strong>Buy High and Sell Low? Circle Dumps Poloniex As Crypto Market Interest Wanes<\/strong> <\/a><\/em><\/p>\n
But Circle eventually turned its focus on the USDC stablecoin, and after US regulators began putting pressure on platforms catering to US-based investors, Poloniex began to suffer.<\/span><\/p>\n
In October, Circle revealed it would be selling Poloniex in a \u201cspin out\u201d that would lead to additional investment in Poloniex. However, it also meant that US-based crypto investors would soon be banned from using the trading platform. <\/span><\/p>\n
Poloniex gave ample warning to US-based crypto investors to remove their funds from the platform, but it seems as though not all investors took the warning seriously, as Circle has announced<\/a> that it will soon take aggressive action with any funds left on the platform.<\/span><\/p>\n
As of December 16, if US-based crypto investors don\u2019t withdraw their assets, they will lose access to their Poloniex account, the remaining assets will be traded into USDC for storage, and Circle may charge a \u201cmonthly service fee and\/or one-time dormancy fee.\u201d <\/span><\/p>\n
Worse yet, Circle may turn over the assets to the US government, in accordance with regulations.<\/span><\/p>\n

Poloniex Controversy: Delisting DigiByte Token In Cahoots With Justin Sun and TRON<\/h2>\n
While the news that Circle may soon charge dormancy fees or turn assets over to the state, the Poloniex spin-out is spinning out of control.<\/span><\/p>\n
The cryptocurrency exchange is currently the subject of controversy after they revealed that DigiByte token would be delisted from the platform.<\/span><\/p>\n
\n
After a careful review, we decided #DigiByte<\/a> is not qualified per our listing standard. We will delist $DGB<\/a> soon. Details to be announced.<\/p>\n
— Poloniex Exchange (@Poloniex) December 5, 2019<\/a><\/p><\/blockquote>\n