Bittrex Agrees to Pay $24 Million to Settle SEC Lawsuit
Bittrex, a cryptocurrency exchange, has agreed to pay $24 million to settle claims made by the U.S. Securities and Exchange Commission (SEC) that it operated as an unregistered national securities exchange. The SEC also sued Bittrex’s former CEO, William Shihara, and its foreign affiliate, Bittrex Global GmbH. The settlement requires Bittrex and Bittrex Global to pay a $5.6 million fine and hand over $18.4 million in allegedly illicit profit after the approval of a liquidation plan in the bankruptcy case. The companies and Shihara are also prohibited from violating U.S. securities laws. Bittrex stated that it was “delighted” to have reached a settlement and would provide more information after court approval.
Key Points:
– Bittrex has agreed to pay $24 million to settle claims by the SEC that it operated as an unregistered national securities exchange.
– The settlement includes a $5.6 million fine and $18.4 million in allegedly illicit profit.
– Bittrex and its foreign affiliate, Bittrex Global, are prohibited from violating U.S. securities laws.
– The company filed for bankruptcy in May.
– Bittrex denies that securities were traded on its platform and claims to have no U.S. customers.
Hot Take:
The settlement between Bittrex and the SEC highlights the importance of complying with securities laws in the cryptocurrency industry. By paying a significant sum and agreeing to follow regulations, Bittrex acknowledges the need to protect consumers and foster innovation in a balanced manner. This case serves as a reminder to other crypto exchanges to ensure they are properly registered to avoid similar legal actions in the future.
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