Financial Conduct Authority (FCA), the UK’s financial watchdog, has warned the public that Justin Sun’s cryptocurrency exchange, Poloniex, is running without permission.
The FCA made it clear that people who trade on the platform are not protected by financial rules. This advice comes after the FCA put Justin Sun’s HTX and KuCoin on a list of cryptocurrency firms to be watched out for in October.
According to the FCA alert, Poloniex may be advertising financial services or products without permission. Users are advised not to use the site. Poloniex, which is based in Seychelles, was recently hacked in a suspicious way. Three businesses run by Justin Sun were hacked. The hacker stole $114 million from Poloniex, $30 million from HTX, and $87 million from the HECO bridge. No one knows who they are.
Changpeng Zhao (CZ), a friend of Justin Sun and previous CEO of Binance, pleaded guilty to criminal charges. This set off a chain of events. People have noticed that Sun’s behavior on social media has changed since CZ’s deal with the Department of Justice.
He has only shared pre-recorded videos of himself that have been improved by AI. This has made some users wonder if Sun could be involved in hacking his own exchanges as part of his plan to leave the industry.
Along with Poloniex and HTX, the FCA has recently warned Bitfinex, which is Tether’s sister business. These events show that regulators are paying more attention to the cryptocurrency area and users need to be careful when using unregulated platforms.