CDS Crypto News SEC Levies 275,000 Dollars Unregistered Securities Fine Against Crypto Company Operating for a Decade
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SEC Levies 275,000 Dollars Unregistered Securities Fine Against Crypto Company Operating for a Decade

The Seucurities and Exchange Commission fines ShapeShift $275,000 for unregistered securities dealing.

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SEC Levies 275,000 Dollars Unregistered Securities Fine Against Crypto Company Operating for a Decade

Crypto News- The US Securities and Exchange Commission (SEC) recently turned its attention towards ShapeShift, a crypto exchange with a decade-long operational history, headquartered in Denver, Colorado. Allegations from the SEC accused ShapeShift of operating as an unregistered securities dealer.

SEC Levies 275,000 Dollars Unregistered Securities Fine Against Crypto Company Operating for a Decade

These charges come amidst increased regulatory scrutiny over the crypto industry, particularly following the industry-wide collapses witnessed in 2022. Interestingly, the SEC’s actions against ShapeShift occurred even before the firm halted its exchange activities in the US back in 2021. In response to the allegations, ShapeShift agreed to a settlement on Tuesday, agreeing to pay a $275,000 fine and pledging to avoid future violations of the Securities Exchange Act.

ShapeShift’s purported offense involved offering around 79 crypto assets to users, some of which were considered investment contracts, although the SEC did not specify which ones were classified as securities. This scenario mirrors similar charges leveled against other prominent US-based crypto exchanges like Coinbase, Kraken, and Binance.US.

According to the SEC, ShapeShift directly engaged with its customers, buying and selling crypto assets from its own accounts, effectively acting as both a buyer and seller on its platform. This alleged practice persisted from 2014 until the company ceased its US exchange operations in 2021. In response to the SEC’s actions, Erik Voorhees, ShapeShift’s founder, clarified that the firm neither admitted nor denied the allegations. He drew attention to the delicate balance between government oversight and the necessity for self-regulation, invoking principles akin to those discussed in the Federalist Papers.

Under the leadership of Chairman Gary Gensler, the SEC has embarked on an unprecedented number of enforcement actions against the crypto industry. This vigorous regulatory stance has stirred apprehension and uncertainty within the sector.

SEC Levies 275,000 Dollars Unregistered Securities Fine Against Crypto Company Operating for a Decade

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