SEC Announces $24 Million Settlement in Lawsuit Against Bittrex and Its Former CEO

SEC Announces $24 Million Settlement in Lawsuit Against Bittrex and Its Former CEO

The US Securities and Exchange Commission has announced a settlement bittrexcrypto trading platform, as well as William ShiharaCo-founder and former CEO, For operating an unregistered exchange.

In an August 10 release, the SEC stated that Bittrex and Bittrex Global have agreed to pay $14.4 million (payment of wrong earnings), $4 million in upfront interest and $5.6 million in civil penalties To settle a legal dispute with a federal regulator. The deal is still subject to court approval.

“Over the years, Bittrex has worked with token issuers to “clean” their online statements of any indication that they were investment contracts – all in an effort to circumvent federal securities laws.”The director of the SEC’s Division of Enforcement said, Gurbir Grewal, “Today’s settlement makes clear that liability cannot be avoided simply by changing the label or changing the description, because the economic reality of those offerings matters.”

Today we announced that crypto trading platform Bittrex Inc. and its co-founder and former CEO, William Shihara, have entered into a settlement on allegations that they operated an unregistered securities exchange, broker and clearing.

– US Securities and Exchange Commission (@SECGov) 10 August 2023

In a statement to Cointelegraph, Shihara described the deal as “good result”saying that the United States had to “Finding a balance between the need to foster innovation, encourage entrepreneurs and protect consumers”, Shihara was the CEO of Bittrex from its inception in 2014 until his departure in 2019.

The SEC has alleged this in a complaint filed in April Bittrex and Shihara operated an unregistered national securities exchange, broker and clearing agency, The financial regulator has also launched a separate enforcement action against Bittrex Global. “Managing a Single Order Book Shared with Bittrex”.

l’Office of Foreign Assets Control And this Financial Crimes Enforcement Network The US Treasury Department took enforcement action against Bittrex in October 2022, with the company agreeing to a $29 million settlement. In March, the exchange announced it would cease operations in the United States in April, saying the move was due to the country’s regulatory environment. In May, he filed for Chapter 11 bankruptcy.

As of August 10, the SEC has pending lawsuits against several crypto companies Binance, Coinbase, Ripple Labs and Terraform Labs, Several US lawmakers and industry leaders have criticized the agency for taking such an approach. “Regulate through enforcement”.