Bittrex, a major digital asset exchange, and its ex-CEO, William Shihara, have settled for $24 million with the U.S. SEC due to registration concerns. Crypto News.
Bittrex 24M$ Settlement with SEC: An overview
The SEC’s lawsuit, launched in April 2023, pinpoints Bittrex’s 2014-2019 operations. The company allegedly facilitated crypto asset services for U.S. investors without the necessary registration. Shihara reportedly furthered the issue by suggesting asset issuers alter their public statements to avoid SEC detection.
SEC’s Stance
On August 11, Bittrex opted for a $24 million settlement. Affiliated entity, Bittrex Global GmbH, recognized its lapse in not registering as a national securities exchange. However, neither party confirmed nor denied the claims.
Gurbir S. Grewal, leading the SEC’s enforcement division, emphasized that renaming products doesn’t negate legal obligations. He alluded to Bittrex’s alleged efforts to tweak token issuers’ public comments.
Bittrex’s Financial Woes
In March, Bittrex announced a U.S. operational shutdown, causing a rush of client withdrawal requests. The situation escalated to a bankruptcy filing in May, revealing they held $300 million in client assets. While a June court ruling allowed Bittrex to process uncontested claims, future legal battles regarding asset ownership loom.
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