Crypto Exchange Bittrex Settles with SEC for $24 Million

blockchain.news:

The Securities and Exchange Commission (SEC) revealed on August 10, 2023 , that Bittrex Inc., a prominent crypto trading platform, and its co-founder and erstwhile CEO, William Shihara, have reached a settlement over allegations of operating without proper registrations. The charges encompassed operating an unregistered national securities exchange, broker, and clearing agency. Bittrex's international counterpart, Bittrex Global GmbH, was similarly implicated for neglecting to register as a national securities exchange.

Documents from the U.S. District Court for the Western District of Washington detail the SEC's grievances, highlighting Bittrex's role as an unregistered entity catering to U.S. investors. These investors were allegedly presented with crypto assets that, according to the SEC, were securities in disguise. The narrative deepens with claims that Bittrex, under Shihara's guidance, advised crypto issuers to erase certain public statements that could potentially draw regulatory attention.

Gurbir S. Grewal, the SEC's Enforcement Division Director, remarked, «Bittrex's longstanding tactic of sanitizing online statements to sidestep federal securities regulations has proven futile.»

The terms of the settlement dictate that Bittrex and Shihara are prohibited from breaching specific sections of the Securities Exchange Act of 1934. Financially, both Bittrex entities are jointly on the hook for a sum of $24 million, a figure that encompasses various penalties and dues.

This settlement is a response to the SEC's charge released on April 17, 2023, in which the regulatory body alleged that Bittrex had amassed a staggering $1.3 billion from transaction fees, all the while neglecting to comply with mandatory