Bittrex Crypto Exchange Fined $24M for Violating U.S. Sanctions

Bittrex Crypto Exchange was fined $24 million on Tuesday for helping its clients evade the sanction that the U.S. government has imposed in Cuba, Sudan, Syria, Iran, and Crimea. The fine is the largest penalty ever applied to a crypto exchange platform, by the Office of Foreign Assets Control (OFAC).

The U.S. Treasury Department has stated that the crypto exchange has permitted its customers from Cuba, Sudan, Syria, Iran, and Crimea to trade cryptocurrency worth over $260 million, between 2014 and 2017. 

Bittrex Crypto Exchange’s sanctions breach considered a national security issue

Andrea Gacki, director of OFAC has stated that “When virtual currency firms fail to implement effective sanctions compliance controls, including screening customers located in sanctioned jurisdictions, they can become a vehicle for illicit actors that threaten U.S national security.”

The Washington State-based crypto exchange has stated that the company was happy to resolve the charges brought up by the U.S. state. However, it appears that Bittrex is treading on thin ice, according to FinCen’s acting director, Himamauli Das, who has stated that “Bittrex’s failures created exposure to high-risk counterparties including sanctioned jurisdictions, darknet markets, and ransomware attackers.”

Bittrex Crypto Exchange

Credit: The Cryptocurrency Post

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