Bittrex to pay $24M in settlement with US securities regulator.
Bittrex Agrees to $24 Million Settlement with SEC
By Jody Godoy
In an exciting development, Bittrex has reached a settlement with the U.S. Securities and Exchange Commission (SEC) to pay $24 million. This comes after the SEC claimed that the cryptocurrency exchange failed to register with the agency. The filing in Seattle federal court on Thursday revealed the details of the settlement.
The SEC had previously sued Bittrex Inc and its former CEO William Shihara, accusing them of operating an unregistered national securities exchange, broker, and clearing agency. Additionally, the SEC claimed that Bittrex Global GmbH, the exchange’s foreign affiliate, failed to register as a national securities exchange.
As part of the settlement, Bittrex Inc, Bittrex Global, and Shihara will pay a $5.6 million fine and hand over $18.4 million in allegedly illicit profit within 60 days after a liquidation plan is filed in the bankruptcy case. The settlement also includes an order barring the companies and Shihara from violating U.S. securities laws, although they did not admit to the SEC’s allegations.
A spokesperson for Bittrex expressed their delight at reaching a settlement and mentioned that they would provide more information once the court approves the resolution. It’s worth noting that Bittrex had previously denied trading securities on its platform and claimed to have no U.S. customers.
The SEC’s lawsuit alleged that Shihara collaborated with crypto asset issuers to remove public statements that could lead to regulatory investigations into those token offerings as securities. Gurbir Grewal, the SEC Enforcement Director, emphasized that the settlement sends a clear message that changing labels or descriptions does not absolve liability, as the economic realities of the offerings matter.
Shihara welcomed the settlement as a positive outcome and highlighted the importance of striking a balance between fostering innovation, supporting entrepreneurs, and protecting consumers.
(Reporting by Jody Godoy in New YorkAdditional reporting by Chris PrenticeEditing by Matthew Lewis)
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