Paradigm Submits Amicus Brief in SEC Lawsuit Against Bittrex

Paradigm, a well-known cryptocurrency investment firm, has lodged an amicus brief in the ongoing legal battle between the U.S. Securities and Exchange Commission (SEC) and Bittrex, a cryptocurrency exchange based in the United States.

Paradigm Submits Amicus Brief in SEC Lawsuit Against Bittrex

In its filing, Paradigm firmly opposes the SEC’s endeavor to extend its regulatory authority over secondary markets in the crypto industry, deeming it unfounded.

Amicus briefs are legal documents presented to a court by individuals or organizations not directly involved in a case, acting as a “friend of the court” to offer advice or information pertaining to the matter at hand. Paradigm’s amicus brief serves as a statement of its position, asserting its disagreement with the SEC’s attempt to broaden its jurisdiction in the realm of crypto secondary markets.

Paradigm contends that the SEC’s efforts to exert control over crypto secondary markets, as demonstrated in previous cases involving Coinbase and Kraken, are misguided and unfounded.

Bittrex, a cryptocurrency exchange based in Seattle, had been catering to American users until March of this year when it made the decision to wind down its operations due to the prevailing regulatory and economic landscape in the United States.

Subsequently, in May, Bittrex filed for Chapter 11 bankruptcy, disclosing over 100,000 creditors and estimating its liabilities and assets to fall within the range of $500 million to $1 billion.

“The SEC’s claims against Bittrex and the other crypto exchanges are fundamentally different from its many prior cases against token sellers,” Paradigm said in a statement shared by the firm’s special counsel Rodrigo Seira.