The US-based cryptocurrency exchange Bittrex has agreed to settle a $24 million lawsuit with the US Securities and Exchange Commission (SEC) over allegations of selling unregistered securities. While Bittrex has agreed to pay the sum, it has neither admitted to nor denied the SEC’s allegations.
Background: SEC Allegations Against Bittrex
In April, the SEC filed a lawsuit against Bittrex and its former CEO, William Shihara, for allegedly offering unregistered securities. The SEC also accused Bittrex’s foreign subsidiary, Bittrex Global GmbH, of operating without registering as a national securities exchange.
Bittrex is not the only cryptocurrency exchange facing SEC charges. Coinbase and Binance are also dealing with similar allegations. However, both Coinbase and Binance have expressed their intention to fight the charges. Coinbase, being a publicly listed company, claims that the SEC had knowledge of its operations prior to its listing.
The settlement between Bittrex and the SEC is pending court approval. A Bittrex spokesperson stated that the exchange will provide further comment once the agreement is approved by the court.
What was Bittrex accused of by the SEC?
The SEC accused Bittrex of offering unregistered securities to US investors and operating without registering as a national securities exchange.
Did Bittrex admit or deny the SEC’s allegations?
Bittrex neither admitted to nor denied the SEC’s allegations as part of the settlement.
Are other cryptocurrency exchanges facing similar allegations?
Yes, Coinbase and Binance are also facing charges from the SEC regarding the offering of unregistered securities.