Bittrex reaches $24 million settlement with SEC over unregistered securities sale
The US-based cryptocurrency exchange Bittrex has reached a $24 million settlement with the US Securities and Exchange Commission (SEC) in a lawsuit accusing the exchange of offering unregistered securities to US investors. The SEC confirmed the payment in a tweet.
“We announced today that cryptocurrency asset trading platform Bittrex Inc. and its co-founder and former CEO, William Shihara, have agreed to settle charges that they operated an unregistered national securities exchange, broker, and clearing agency,” the SEC said.
However, the exchange has neither admitted nor denied the SEC’s allegations of offering unregistered securities.
SEC allegations against Bittrex
In April, the SEC filed a lawsuit against Bittrex and its former CEO William Shihara for the sale of unregistered securities. The SEC also claimed that the exchange’s foreign subsidiary, Bittrex Global GmbH, failed to register as a national securities exchange.
Bittrex is not the only cryptocurrency exchange being targeted by the SEC. Binance and Coinbase are also facing similar allegations. However, both Binance and Coinbase have vowed to fight until the end. Coinbase, a publicly listed company, stated that it had disagreed with the SEC as it was aware of the exchange operations when it applied for listing as a public company.
However, the settlement still needs to be approved by the court, and a Bittrex spokesperson said that they would provide further comment on the settlement once it is approved.
This latest development highlights the increasing regulatory scrutiny facing the cryptocurrency industry. Both US and international regulators have been cracking down on exchanges that offer unregistered securities, citing concerns over investor protection and market integrity. The Bittrex settlement serves as a reminder to other cryptocurrency exchanges to ensure compliance with securities laws to avoid similar legal repercussions.
Disclaimer: This article is for informational purposes only and should not be taken as financial advice.
