Bittrex Settles With SEC Over Unregistered Services Row
A few months after being sued for allegedly defying the Securities and Exchanges Commissions rules by offering services to US clients without registration, the bankrupt crypto trading platform has chosen to settle the lawsuit by paying a $24 million fine.
Key Points:
- In April, the US SEC filed a lawsuit against Bittrex for operating as a securities exchange, broker, and clearinghouse without registering.
- Bittrex was accused of instructing crypto issuers to delete any statements that could suggest their tokens violate securities law.
- The lawsuit also included Bittrex’s co-founder and its global affiliate, who were accused of failing to register their operations.
- The settlement agreement does not require Bittrex or its co-founder to acknowledge or reject the accusations publicly.
- The settlement includes a $24 million fine, with $14.4 million for disgorgement, $4 million in prejudgment interest, and $5.6 million in civil money penalties.
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Hot Take:
The settlement between Bittrex and the SEC highlights the consequences of operating without proper registration in the crypto industry. While Bittrex’s co-founder sees it as a positive outcome, critics argue that the SEC’s focus should be on regulating the crypto space rather than celebrating fines. This settlement adds to the SEC’s ongoing legal issues with crypto exchanges, and it remains to be seen how these actions will shape the future of the industry.
