Digital assets exchange Bittrex settles with the SEC for $24 million
– Bittrex and its former CEO, William Shihara, have reached a $24 million settlement with the US SEC over unregistered services to American investors involving crypto assets.
– The SEC accused Bittrex of urging asset issuers to remove “problematic statements” to avoid SEC scrutiny.
– Bittrex Global GmbH acknowledged that it failed to register as a national securities exchange as part of the settlement.
– The defendants did not admit or deny the allegations.
– The head of the SEC’s enforcement division emphasized that changing labels or descriptions does not exempt parties from legal responsibility.
Bittrex announces bankruptcy and $300 million in client assets
– In March, Bittrex announced its intention to end US operations, leading to a surge in withdrawal requests.
– The exchange filed for bankruptcy on May 8, revealing $300 million in client cash and bitcoin holdings.
– The US government opposed Bittrex’s efforts to allow customers access to their assets due to unpaid sanctions-related penalties.
– A Delaware bankruptcy court ruling on June 13 allowed the exchange to facilitate withdrawals for uncontested claims.
– Ownership of the assets has not been finalized, leaving room for potential legal complications.
Hot Take:
The settlement between Bittrex and the SEC serves as a reminder that regulatory compliance is crucial in the world of cryptocurrencies. Despite the attempt to alter public statements, the SEC held Bittrex accountable for unregistered services. The bankruptcy announcement further highlights the challenges faced by crypto exchanges, especially when it comes to legal and regulatory matters. It remains to be seen how the ownership of Bittrex’s assets will be resolved in the future.
By
By
By
By
By
By