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FARE Protocol Raises $6.2M Seed Round; Poloniex Pays $7.6M to Settle Alleged Sanctions Violations

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FARE Protocol
FARE Protocol

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FARE Protocol, a startup that utilizes probability smart contracts to power its ecosystem, has recently made headlines with its impressive $6.2 million seed round funding led by Goat Capital and C Squared Ventures.

The success of the fundraising round can be attributed to the platform’s innovative use of probability smart contracts to randomize the minting and burning of its native token, FARE, with transparent on-chain events based on probability variables.

FARE Protocol Launches on Ethereum Layer 2 Arbitrum Poised to Disrupt the Blockchain Ecosystem

FARE Protocol stands out among other blockchain-based platforms due to its higher likelihood of token loss or burning compared to minting or winning, much like the odds favoring the house in a casino.

However, FARE Protocol’s approach to token deflation is significantly different from that of traditional casinos. Instead of the profits being retained by a centralized “house,” the collected FARE tokens are distributed throughout the ecosystem, thereby providing value to the token holders.

FARE Protocol’s ecosystem and native token are set to launch on Ethereum layer 2 blockchain Arbitrum later this year. The launch has already sparked the interest of investors, with a number of venture capital firms and angel investors participating in the seed round fundraising.

Apart from Goat Capital and C Squared Ventures, other investors that have pledged their support to FARE Protocol include Republic Crypto, 6th Man Ventures, Spark Digital Capital, Arrington Capital, Quantstamp, Eniac Ventures, DWeb3, and Morningstar Ventures.

The launch of FARE Protocol on Ethereum layer 2 blockchain Arbitrum has positioned the platform as one of the most promising startups to watch out for in the coming months.

Arbitrum has been at the forefront of some of the most highly anticipated events in recent memory, such as the airdrop of its ARB token to early builders, users, and investors.

Despite the controversy surrounding the Arbitrum DAO and its premature movement of nearly $1 billion of tokens to the Arbitrum Foundation before a vote on how to use the funds had finished, the launch of FARE Protocol is still eagerly awaited by many in the crypto community.

As FARE Protocol continues to gain momentum in the crypto space, it is poised to bring new possibilities and opportunities to the blockchain ecosystem. With its innovative use of probability smart contracts, the platform is set to revolutionize the way in which we think about token deflation and distribution.

As investors and enthusiasts alike eagerly await the launch of FARE Protocol on Ethereum layer 2 blockchain Arbitrum, it is clear that this startup is one to watch in the coming months.

Poloniex to Pay $7.6M Settlement for Over 65K Apparent Sanctions Violations

The United States Treasury Department’s Office of Foreign Asset Control (OFAC) announced on May 1, 2023, that cryptocurrency exchange Poloniex has agreed to pay a $7.6 million settlement related to over 65,000 apparent violations of multiple sanctions programs.

The settlement is related to Poloniex’s alleged violations of U.S. sanctions against Cuba, Iran, Sudan, Syria, and Crimea.

As per the notice released by the United States Treasury Department’s Office of Foreign Asset Control (OFAC), Poloniex facilitated digital asset-related transactions, including trades, deposits, and withdrawals, amounting to more than $15 million for users located in the sanctioned jurisdictions between January 2014 and November 2019.

The Office of Foreign Asset Control has highlighted that Poloniex did not perform a review of users who signed up on its platform between the time it was launched in January 2014 and the rollout of its sanctions compliance program in May 2015. This lack of review is said to have led to violations, which have been made apparent.

However, it is worth noting that the violations committed by Poloniex were not deemed as “voluntarily self-disclosed” nor categorized as “egregious” by the regulatory agency.

The notice from OFAC noted that “Although Poloniex made efforts to identify and restrict accounts with a nexus to Iran, Cuba, Sudan, Crimea, and Syria pursuant to its compliance program, certain customers apparently located in these jurisdictions continued to use Poloniex’s platform to engage in online digital asset-related transactions.” Therefore, Poloniex’s alleged violations were a result of insufficient screening and not a deliberate attempt to bypass sanctions.

In 2018, Circle, the stablecoin issuer, acquired Poloniex, and subsequently, OFAC’s investigation found that the company’s compliance measures had “further improved.”

This improvement was achieved by closing accounts that were found to be operating with IP addresses in Crimea, thereby demonstrating the company’s commitment to complying with sanctions regulations. Later in 2019, a group of investors, including Justin Sun, the founder of Tron, acquired Poloniex from Circle.

It is worth noting that cryptocurrency exchanges have come under increased regulatory scrutiny in recent years. The regulatory landscape is rapidly evolving, and it is important for exchanges to maintain robust compliance programs to avoid penalties like the one Poloniex has agreed to pay.

Kraken reached a settlement with OFAC in November 2022, agreeing to pay $362,000 in response to apparent sanctions violations related to Iran that were similar in nature.

As the regulatory landscape continues to evolve, it is crucial for exchanges to stay up-to-date with regulatory requirements to avoid financial and legal consequences.

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