SEC Charges Crypto Exchange Bittrex With Operating Unregistered Exchange, Broker, and Clearing Agency

0 11

SEC Charges Crypto Exchange Bittrex With Operating Unregistered Exchange, Broker, and Clearing Agency

knife

After the report revealing that the cryptocurrency exchange Bittrex had received a Wells Notice from the U.S. Securities and Exchange Commission (SEC), the securities regulator charged Bittrex and the company’s CEO on April 17 for “operating an unregistered exchange, broker, and clearing agency.”

Following the Wells Notice, SEC Charges Bittrex for Violating Federal Laws

On Monday, the U.S. Securities and Exchange Commission (SEC) charged another cryptocurrency exchange, accusing the trading platform Bittrex of operating “an unregistered national securities exchange, broker, and clearing agency.” Since 2014, Bittrex allegedly sold crypto assets that were “offered and sold as securities.” The SEC’s complaint was filed in the U.S. District Court for the Western District of Washington.

The SEC further alleged that Bittrex Global should have registered the exchange, and the regulator claims the two entities leveraged a “shared order book.” The complaint also notes that Bittrex should have registered as a clearing agency and a broker. “[Bittrex] regularly engaged in the business of effecting transactions for the accounts of others in crypto assets that were offered and sold as securities,” the SEC’s complaint insists.

“Today we’re holding Bittrex accountable for its noncompliance,” SEC chair Gary Gensler wrote in a statement on Monday. “Today’s action, yet again, makes plain that the crypto markets suffer from a lack of regulatory compliance, not a lack of regulatory clarity. “As alleged in our complaint, Bittrex and issuers that it worked with knew the rules that applied to them but went to great lengths to evade them by directing issuer-applicants to ‘scrub‘ offering materials of information indicating that certain crypto assets were securities.”

The SEC chairman added:

Further, Bittrex, as alleged, failed to register and comply with U.S. securities laws as an exchange, broker-dealer, and clearing agency. Cosmetic alterations did nothing to change the underlying economic realities of the offerings and Bittrex’s conduct.

The SEC’s complaint follows the recent news that Bittrex received a Wells notice informing the cryptocurrency exchange of possible enforcement action. Bittrex’s general counsel, David Maria, told the Wall Street Journal that if the SEC decided to sue the firm, the exchange would contest the action in court unless the regulator “presented a reasonable settlement offer.” At the time of writing, the SEC’s complaint doesn’t offer any settlement, and the court filing says a “jury trial [is] demanded.” In addition to the cryptocurrency exchange Bittrex Global, the company’s CEO, William Hiroaki Shihara, is also named in the case.

What are your thoughts on the SEC’s latest enforcement action against Bittrex, and do you think it will lead to increased regulatory scrutiny in the cryptocurrency industry? Share your thoughts in the comments section below.

Leave A Reply

Your email address will not be published.

bitcoin
Bitcoin (BTC) $ 63,778.09
ethereum
Ethereum (ETH) $ 3,409.86
tether
Tether (USDT) $ 1.00
bnb
BNB (BNB) $ 569.63
solana
Solana (SOL) $ 156.10
usd-coin
USDC (USDC) $ 1.00
staked-ether
Lido Staked Ether (STETH) $ 3,408.47
xrp
XRP (XRP) $ 0.571693
the-open-network
Toncoin (TON) $ 7.34
dogecoin
Dogecoin (DOGE) $ 0.122748
cardano
Cardano (ADA) $ 0.439109
tron
TRON (TRX) $ 0.134025
shiba-inu
Shiba Inu (SHIB) $ 0.000019
avalanche-2
Avalanche (AVAX) $ 27.48
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 63,845.11
polkadot
Polkadot (DOT) $ 6.32
chainlink
Chainlink (LINK) $ 14.14
bitcoin-cash
Bitcoin Cash (BCH) $ 383.66
near
NEAR Protocol (NEAR) $ 6.12
uniswap
Uniswap (UNI) $ 8.08
leo-token
LEO Token (LEO) $ 5.85
litecoin
Litecoin (LTC) $ 73.09
dai
Dai (DAI) $ 1.00
wrapped-eeth
Wrapped eETH (WEETH) $ 3,557.42
matic-network
Polygon (MATIC) $ 0.53497
pepe
Pepe (PEPE) $ 0.000012
internet-computer
Internet Computer (ICP) $ 9.57
kaspa
Kaspa (KAS) $ 0.178493
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.39
ethereum-classic
Ethereum Classic (ETC) $ 23.40
ethena-usde
Ethena USDe (USDE) $ 1.01
aptos
Aptos (APT) $ 6.88
stellar
Stellar (XLM) $ 0.10609
monero
Monero (XMR) $ 159.99
maker
Maker (MKR) $ 2,921.75
hedera-hashgraph
Hedera (HBAR) $ 0.076049
blockstack
Stacks (STX) $ 1.84
vechain
VeChain (VET) $ 0.031815
crypto-com-chain
Cronos (CRO) $ 0.094079
render-token
Render (RNDR) $ 6.45
okb
OKB (OKB) $ 42.25
cosmos
Cosmos Hub (ATOM) $ 6.46
filecoin
Filecoin (FIL) $ 4.39
mantle
Mantle (MNT) $ 0.757143
arbitrum
Arbitrum (ARB) $ 0.743365
injective-protocol
Injective (INJ) $ 23.28
immutable-x
Immutable (IMX) $ 1.46
dogwifcoin
dogwifhat (WIF) $ 2.19
sui
Sui (SUI) $ 0.844304
bittensor
Bittensor (TAO) $ 290.69
renzo-restaked-eth
Renzo Restaked ETH (EZETH) $ 3,468.36
the-graph
The Graph (GRT) $ 0.211073
first-digital-usd
First Digital USD (FDUSD) $ 1.00
optimism
Optimism (OP) $ 1.75
rocket-pool-eth
Rocket Pool ETH (RETH) $ 3,823.47
bonk
Bonk (BONK) $ 0.000027
arweave
Arweave (AR) $ 28.22
floki
FLOKI (FLOKI) $ 0.000184
mantle-staked-ether
Mantle Staked Ether (METH) $ 3,534.66
notcoin
Notcoin (NOT) $ 0.016004
lido-dao
Lido DAO (LDO) $ 1.77
aave
Aave (AAVE) $ 104.47
ondo-finance
Ondo (ONDO) $ 1.06
bitget-token
Bitget Token (BGB) $ 1.07
theta-token
Theta Network (THETA) $ 1.49
fantom
Fantom (FTM) $ 0.509903
jasmycoin
JasmyCoin (JASMY) $ 0.029528
whitebit
WhiteBIT Coin (WBT) $ 9.68
based-brett
Brett (BRETT) $ 0.136949
thorchain
THORChain (RUNE) $ 4.01
algorand
Algorand (ALGO) $ 0.157887
celestia
Celestia (TIA) $ 6.46
pyth-network
Pyth Network (PYTH) $ 0.33436
ether-fi-staked-eth
ether.fi Staked ETH (EETH) $ 3,409.85
jupiter-exchange-solana
Jupiter (JUP) $ 0.871952
coredaoorg
Core (CORE) $ 1.32
quant-network
Quant (QNT) $ 78.37
sei-network
Sei (SEI) $ 0.347494
mantra-dao
MANTRA (OM) $ 1.32
gatechain-token
Gate (GT) $ 7.66
elrond-erd-2
MultiversX (EGLD) $ 35.18
kucoin-shares
KuCoin (KCS) $ 9.62
flow
Flow (FLOW) $ 0.607142
flare-networks
Flare (FLR) $ 0.020638
kelp-dao-restaked-eth
Kelp DAO Restaked ETH (RSETH) $ 3,479.84
bittorrent
BitTorrent (BTT) $ 0.00000090424227
eos
EOS (EOS) $ 0.58491
gala
GALA (GALA) $ 0.023993
axie-infinity
Axie Infinity (AXS) $ 5.88
bitcoin-sv
Bitcoin SV (BSV) $ 43.79
beam-2
Beam (BEAM) $ 0.017196
tokenize-xchange
Tokenize Xchange (TKX) $ 10.76
ethereum-name-service
Ethereum Name Service (ENS) $ 26.86
akash-network
Akash Network (AKT) $ 3.50
dydx-chain
dYdX (DYDX) $ 1.39
msol
Marinade Staked SOL (MSOL) $ 188.30
tezos
Tezos (XTZ) $ 0.812587
popcat
Popcat (POPCAT) $ 0.812888
neo
NEO (NEO) $ 11.23
starknet
Starknet (STRK) $ 0.598013