Justin Sun’s Poloniex Facing New Troubles

By Vince • December 7, 2023 11:50 am • Comments

Justin Sun’s Poloniex exchange is facing a new slew of troubles following the exchange’s $100 million hack last month.

The crypto exchange has been added to the United Kingdom’s FCA warning list of unregulated entities. No specific reason was given for Poloniex’s appearance on the list, but it is likely related to the fact that Justin Sun’s companies have suffered four hacks in just two months.

Additionally, users are reporting that they are still having trouble withdrawing their funds from the platform.

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Poloniex previously told users that withdrawal issues were resolved and that customers of the platform could withdraw their funds denominated in certain currencies, yet widespread issues are still being reported.

Traders on the platform are now increasingly uneasy with the stability and future of the exchange, with some warning that users should withdraw their funds while they still can. Multiple outlets and individuals are reporting issues with Poloniex:

Crypto Slate provided more specifics on the FCA warning:

A Dec. 6 update from the financial regulator stated:“[Poloniex] may be promoting financial services or products without our permission. You should avoid dealing with this firm.”

The FCA emphasized that the company lacked authorization to engage with UK residents regarding its product offerings.

On Monday, Poloniex announced: “We are pleased to announce that Poloniex has resumed the withdrawal and deposit services for certain cryptos via TRON network, including USDT, USDD, BTT, WIN, NFT, SUN, JST, USDJ and USDC. The resumption of deposit and withdrawal services for more cryptos on the platform will be implemented gradually.”

Peck Shield Alert sounded the alarm on blockchain hacks this holiday season: “November saw a upsurge in Web3 hacks & exploits compared to the previous month, totaling ~$348.11M across 28 incidents.  2 high-profile attacks targeted  Justin Sun-linked projects, draining $236 million worth of cryptos from Poloniex and HECOBridge & HTX (formerly Huobi.)

$5.4M has been returned by one group of KyberSwap exploiters, with negotiations ongoing for an additional ~$47.6M. DYdX responded to an alleged targeted attack on $YFI by leveraging its $9M Insurance Fund. The exploiter of Raft protocol burned 1,570 $ETH.”

Coin Telegraph had more information on other hacks suffered by a Sun-owned entities:

HTX lost $8 million in September’s attack and $30 million due to a hot wallet breach in late November.

At the same time, HTX’s HECO Chain bridge, a tool designed for moving digital assets between HTX and other networks like Ethereum, was also compromised by hackers, sending at least $86.6 million to suspicious addresses.

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