The legality and security of the Poloniex trading platform

Poloniex is a legal U.S.-regulated cryptocurrency exchange that implements multiple security measures to protect user funds and data, including 2FA, cold storage, anti-money laundering measures, and a bug bounty program. The platform has experienced two major hacks, but has taken steps to strengthen its security against future threats.

The legality and safety of Poloniex trading platform

The legality of Poloniex

Poloniex is a US-based cryptocurrency exchange founded in 2014.

• Company Registration: Poloniex is owned and operated by Polo Digital Assets, Ltd., a company registered in the state of Delaware, USA.
• Regulatory Compliance: Poloniex is regulated by the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) and holds an MSB (Money Services Business) license.

Poloniex Security

Poloniex has implemented multiple security measures to protect its user funds and data:

Dual Factor Authentication (2FA): Forces all users to enable 2FA, which adds an extra layer of security to accounts.
Cold Storage: Most user assets are stored in offline cold wallets to prevent hacker attacks.
Anti-Money Laundering and Counter-Terrorism Financing Measures: Poloniex complies with anti-money laundering and counter-terrorism financing regulations to prevent illegal activities.
Bug Bounty Program: Poloniex operates a bug bounty program that encourages security researchers to report any vulnerabilities on the platform.
Insurance: Poloniex is insured with insurance companies to provide financial protection in the event of a hacker attack or other security incident.

History of Attacks

Poloniex has reported two major hacks in its history:

• 2014: Attackers stole 12 million bitcoins, worth approximately $48 million at the time.
• 2019: Attackers used phishing attacks to steal user data, but not money.

Since these attacks, Poloniex has taken steps to enhance its security protocols.

Overall, Poloniex is a regulated and legal cryptocurrency exchange that implements extensive security measures to protect its user funds and data. Although there have been some hacks, Poloniex has upgraded its security protocols to mitigate future risks.

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