The Investor Protection Unit of Delaware’s Department of Justice (DOJ) has been directly reaching out to Poloniex users in an attempt to gain additional information regarding the exchange’s recent problems. During the last few weeks, numerous Poloniex users have been unable to perform certain necessary actions such as withdraw funds or move money around.
There have also been issues regarding account verification. On December 27, 2017, Poloniex announced changes to their verification methods in an attempt to bring in a more robust model. “Legacy account” holders were urged to resubmit their documentation for a second verification check. While the press release does not provide any particular deadline, it did note that a “deadline will be announced in Q1 2018”. During Q1, some users received messages telling them to submit documentation within a matter of days, and that anybody who did not would have their accounts frozen. This is where most of the Poloniex problems stem from, as even some users who managed to send documentation on time still got their accounts frozen.
Is Poloniex in trouble?
The Investor Protection Unit chose to intervene in this recent Poloniex scandal only after such issues arose. This means that, by the standards of the Department of Justice, the problems people are facing are serious enough for some professional intervention. A large number of users have reported receiving an email from Chief Special Investigator Craig Weldon in regards to the matter. This suggests that the Department of Justice could be considering this a fraud-related matter.
If The Department of Justice chooses to pursue this issue, it could place Poloniex into an uncomfortable position. Craig Weldon and the department clearly seem to find some legal concerns regarding the situation, so it is not unlikely that they could take action.
Problems with user accounts
A significant number of users have taken to social media to try and raise awareness of Poloniex’s issues, as well as find some solutions. The Poloniex subreddit contains a wealth of knowledge about user problems. Here you can find information about users who have had frozen accounts for months, as well as numerous people who had certain transactions simply disappear from the market. Currently, there is a pinned message about plans for a class action lawsuit, linked to a Change.org petition.
Kai is a cryptocurrency copywriter and professional trader. He can often be found investigating various cryptocurrencies, whitepapers, and blockchain technologies. Kai has been a professional writer for 5+ years, and has invested in 50+ different coins and tokens. He also currently studies Law and Philosophy at university.