Cryptocurrency Exchange Bittrex Settles with SEC for $24 Million
Cryptocurrency exchange Bittrex has reached a settlement with the United States Securities and Exchange Commission (SEC), agreeing to pay $24 million. The SEC had filed a lawsuit against Bittrex and its former CEO William Shihara, accusing them of operating as an unregistered broker-dealer, exchange, and clearing agency. The settlement requires Bittrex to pay disgorgement of $14.4 million, prejudgment interest of $4 million, and a civil penalty of $5.6 million. Bittrex has neither admitted nor denied the allegations.
Key points:
– Bittrex agreed to pay $24 million to settle a case with the SEC.
– The SEC accused Bittrex of operating as an unregistered broker-dealer, exchange, and clearing agency.
– The settlement includes disgorgement, prejudgment interest, and a civil penalty.
– Bittrex has been in trouble with regulators before, having paid $29 million in 2022 for apparent violations of sanctions.
– The exchange filed for bankruptcy in May, citing the challenging regulatory and economic environment in the US.
Hot Take:
The settlement between Bittrex and the SEC highlights the ongoing regulatory challenges faced by cryptocurrency exchanges. It serves as a reminder that compliance with securities laws is crucial in the crypto industry. Bittrex’s history of regulatory issues, including violations of sanctions and failure to register, showcases the need for exchanges to prioritize legal and regulatory compliance to maintain the trust of investors and regulators. This settlement may serve as a cautionary tale for other exchanges to ensure they operate within the bounds of the law.
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