SEC accuses crypto exchange Bittrex of violating US securities laws
The Commission alleges that the company coordinated with crypto issuers to remove "problematic claims".
The Securities and Exchange Commission has accused Bittrex and former CEO William Shihara of operating an unregistered stock exchange. In a lawsuit filed on Monday, the SEC alleges that the crypto exchange, once one of the largest in the United States, generated at least $1.3 billion in revenue between 2017 and 2022 while offering the services of a broker, a stock exchange and a clearing agency. He did so without registering with the Commission, in violation of federal law, according to the SEC.
Additionally, the SEC claims that Bittrex has “coordinated” with crypto issuers to remove “problematic statements” that Shihara says would prompt a regulator like the SEC to investigate the exchange. In one instance, the Commission said Shihara asked a potential issuer to erase comments referring to "price forecasts" and "profit expectations".
“Today’s action, once again, makes it clear that crypto markets are suffering from a lack of regulatory compliance, not a lack of regulatory clarity,” the chairman said. of the SEC, Gary Gensler. "As alleged in our complaint, Bittrex and the issuers it worked with knew the rules that applied to them, but went to great lengths to circumvent them by ordering candidate issuers to 'clean up' offering information indicating that some crypto assets were securities. ”
As Coindesk notes, Bittrex, citing "ongoing regulatory uncertainty", announced last month that it would exit the US market at the end of April. Over the weekend, the company told the Wall Street Journal that it had recently been notified by the SEC of possible enforcement action < /em>by the Commission. David Maria, the company's general counsel, said Bittrex would contest the lawsuit unless the Commission offers "a reasonable settlement offer." Last year, the US Treasury fined Bittrex $29 million for previously failing to comply with US money laundering and sanctions laws.
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The Commission alleges that the company coordinated with crypto issuers to remove "problematic claims".
The Securities and Exchange Commission has accused Bittrex and former CEO William Shihara of operating an unregistered stock exchange. In a lawsuit filed on Monday, the SEC alleges that the crypto exchange, once one of the largest in the United States, generated at least $1.3 billion in revenue between 2017 and 2022 while offering the services of a broker, a stock exchange and a clearing agency. He did so without registering with the Commission, in violation of federal law, according to the SEC.
Additionally, the SEC claims that Bittrex has “coordinated” with crypto issuers to remove “problematic statements” that Shihara says would prompt a regulator like the SEC to investigate the exchange. In one instance, the Commission said Shihara asked a potential issuer to erase comments referring to "price forecasts" and "profit expectations".
“Today’s action, once again, makes it clear that crypto markets are suffering from a lack of regulatory compliance, not a lack of regulatory clarity,” the chairman said. of the SEC, Gary Gensler. "As alleged in our complaint, Bittrex and the issuers it worked with knew the rules that applied to them, but went to great lengths to circumvent them by ordering candidate issuers to 'clean up' offering information indicating that some crypto assets were securities. ”
As Coindesk notes, Bittrex, citing "ongoing regulatory uncertainty", announced last month that it would exit the US market at the end of April. Over the weekend, the company told the Wall Street Journal that it had recently been notified by the SEC of possible enforcement action < /em>by the Commission. David Maria, the company's general counsel, said Bittrex would contest the lawsuit unless the Commission offers "a reasonable settlement offer." Last year, the US Treasury fined Bittrex $29 million for previously failing to comply with US money laundering and sanctions laws.
All products recommended by Engadget are selected by our editorial team, independent of our parent company. Some of our stories include affiliate links. If you purchase something through one of these links, we may earn an affiliate commission. All prices correct at time of publication.
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