Cryptocurrency Exchange Bittrex Settles Charges with SEC
Cryptocurrency exchange Bittrex and its former CEO William Shihara have agreed to settle charges brought by the United States Securities and Exchange Commission (SEC). The SEC accused Bittrex of operating an unregistered exchange.
- Bittrex and Bittrex Global will pay a total of $24 million.
- The amount includes returning $14.4 million earned by Bittrex, $4 million in interest, and a fine of $5.6 million.
- The SEC alleged that Bittrex acted as an unregistered broker, exchange, and clearing agency.
- Bittrex and Shihara were accused of directing crypto asset issuers to delete certain statements online.
- Bittrex and Shihara will be permanently forbidden from breaking certain securities laws, pending court approval.
SEC’s Allegations Against Bittrex
The SEC claimed that Bittrex offered and sold securities without being registered as a national securities exchange. Bittrex and Shihara were also accused of instructing crypto asset issuers to remove statements that may attract the SEC’s attention.
Gurbir S. Grewal, Director of the SEC’s Division of Enforcement, emphasized that the promotion of a crypto asset does not determine its classification as a security. The SEC aims to hold non-compliant entities accountable in the crypto industry.
Bittrex’s Timeline of Events in 2023
The SEC filed the complaint against Bittrex on April 17, shortly after Bittrex announced the suspension of its US operations on March 31.
- Bittrex US suspended operations on April 30.
- Bittrex filed for Chapter 11 bankruptcy on May 8, which does not affect the operations of Bittrex Global.
The SEC’s announcement of intent to challenge Ripple’s recent partial legal win influenced its decision to settle with Bittrex. Ripple’s native token, XRP, was deemed not a security when sold to retail investors, leading to concerns from the SEC.
Hot Take
The settlement between Bittrex and the SEC highlights the importance of complying with regulations in the crypto industry. It serves as a reminder that changing labels or altering descriptions does not absolve entities from liability. The SEC’s actions aim to protect investors and ensure the economic realities of crypto offerings are considered.
Bernard Nicolai emerges as a beacon of wisdom, seamlessly harmonizing the roles of crypto analyst, dedicated researcher, and editorial virtuoso. Within the labyrinth of digital assets, Bernard’s insights echo like a resonant chord, touching the minds of seekers with diverse curiosities. His talent for deciphering the most intricate strands of crypto intricacies seamlessly aligns with his editorial finesse, transforming complexity into a captivating narrative of comprehension.