Bittrex Global Targets Individuals Cautious of US Regulatory Ambiguity Following SEC Settlement

Bittrex Global Targets Individuals Cautious of US Regulatory Ambiguity Following SEC Settlement

Crypto News – In the aftermath of resolving its disputes with the United States Securities and Exchange Commission (SEC), Bittrex Global is strategically positioning itself to attract participants in the market who harbor reservations about the uncertain regulatory landscape in the United States.

During April, the regulatory authority initiated enforcement measures against both Bittrex Global and its US-based division, alleging their involvement in unregistered exchange activities. Recently, Bittrex reached an accord with the SEC, thereby putting an end to the legal proceedings.

Bittrex Global’s CEO, Oliver Linch, seized an opportunity on Wednesday to reassure those who are growing increasingly apprehensive about maintaining any form of association with the United States due to the regulatory uncertainty. He declared that Bittrex Global stands as a viable option for individuals seeking to engage in business with a non-US regulated digital asset exchange.

According to a press release issued by Bittrex Global, the company has successfully concluded the enforcement action without incurring any settlement costs. Andrew Michaelson, Bittrex Global’s legal counsel, expressed his satisfaction with this atypical outcome, emphasizing that their client, Bittrex Global, emerged from the matter without making any financial settlements.

Linch voiced a pragmatic perspective, stating that despite the favorable resolution for Bittrex Global, it’s not the moment for complacency. Instead, he emphasized redirecting their focus towards realizing their vision for the future of cryptocurrency—a future marked by regulation, maturity, and integration within the broader financial ecosystem.

The US arm of the cryptocurrency exchange chose to settle with the regulatory body for a sum of $24 million. In a subsequent development, the exchange based in Seattle filed for Chapter 11 bankruptcy protection in May. Official court documents revealed that Bittrex possesses more than 100,000 creditors, with estimated assets and liabilities ranging from $500 million to $1 billion.

The SEC’s action against Bittrex unfolded in April, targeting both the US branch of the exchange and its co-founder, William Shihara. The SEC contended that Bittrex had been operating as an unregistered securities exchange, broker, and clearing agency within the US. Simultaneously, the regulatory body accused Bittrex Global of failing to register as a “national securities exchange.”

The SEC further alleged that Bittrex and Shihara directed applicants seeking token listings to eliminate any social media posts discussing matters such as price forecasts and investment-related expectations. Gurbir S. Grewal, the director of the SEC’s enforcement division, stated that Bittrex had endeavored to expunge indications of investment contracts from online statements for years, in an attempt to evade federal securities regulations—an attempt that ultimately proved unsuccessful.

Once a prominent player in the US exchange arena, Bittrex once commanded a market share of nearly 23% in USD support at the outset of 2018, as evidenced by data from The Block. However, its market share plummeted to less than 1% in 2021 and has since failed to recover its former standing.