Bittrex Settlement: Offering Unregistered Securities to U.S. Investors
The bankrupt exchange, Bittrex, has settled charges of offering U.S. investors access to unregistered securities. The SEC sued Bittrex earlier this year, alleging that the exchange operated as a securities exchange, broker, and clearinghouse without proper registration. Bittrex has agreed to pay a $24 million fine within two months of filing a liquidation plan.
Key Points:
- Bittrex settled charges of offering unregistered securities to U.S. investors
- The SEC alleged that Bittrex operated as a securities exchange, broker, and clearinghouse without registration
- Similar charges have been brought against Coinbase and Binance.US
- Bittrex directed crypto issuers to delete public statements that could violate securities laws
- The settlement requires Bittrex to pay a $24 million fine, including disgorgement and civil money penalties
The settlement requires Bittrex to neither admit nor deny the allegations, and they cannot make public statements suggesting the SEC lacked a factual basis for its claims. Bittrex has until 90 days after its liquidation plan is effective to pay the SEC. If not paid by March 1, the regulator may seek court judgment.
“Today’s settlement makes clear that you cannot escape liability by simply changing labels or altering descriptions because what matters is the economic realities of those offerings,” said SEC Enforcement Director Gurbir Grewal. The SEC is committed to pursuing non-compliance in the crypto industry to protect investors.
Hot Take:
The settlement between Bittrex and the SEC highlights the importance of proper registration and compliance in the cryptocurrency industry. This case serves as a reminder that crypto exchanges must adhere to securities regulations to protect investors and maintain the integrity of the market.
By
By
By
By
By