08-11-2023, 12:44 PM
SEC Fines Bittrex $24M in Settlement for Unregistered Securities Charges
<p>The bankrupt cryptocurrency exchange, Bittrex has agreed
to pay the Securities and Exchange Commission (SEC) a fine of USD $24 million.
The settlement is related to allegations that the cryptocurrency
exchange offered unregistered securities to investors in the US.</p><p>According to the
regulator, Bittrex operated as a securities <a href="https://www.financemagnates.com/terms/e/exchange/" class="terms__main-term" id="b5da6e64-2afe-421d-9b81-16404b7d59d6">exchange</a>, broker, and
clearinghouse without being properly registered. Of the sum, Bittrex will
pay the regulator USD $14.4 million constituting disgorgement, USD $4 million as prejudgment interest and USD $5.6 million in civil
money penalties.</p><p>SEC's Allegations</p><p>The <a href="https://www.financemagnates.com/tag/us-sec/" target="_blank" rel="follow">SEC's</a> allegations extend further, claiming that
Bittrex instructed crypto issuers to remove public statements that could
potentially suggest their transactions might have violated the regulations.
However, the exchange neither acknowledged nor refuted the claims in the
settlement.</p><p>The terms of the settlement are
reportedly subject to approval by the <a href="https://www.financemagnates.com/terms/b/bankruptcy/" class="terms__secondary-term" id="41b3ef0d-d805-441d-8443-121890264e94">bankruptcy</a> court, considering Bittrex's recent bankruptcy filing. Thus, the exchange has a 90-day window to pay the
fine. The failure to make this restitution could result in the regulator raising further charges against the
company. </p><p>The SEC's Enforcement
Director, Gurbir Grewal, <a href="https://www.sec.gov/news/press-release/2023-150" target="_blank" rel="follow">said</a>: "Today's settlement makes clear that you
cannot escape liability by simply changing labels or altering descriptions
because what matters is the economic realities of those offerings."</p><p>Bankruptcy Filing</p><p>Based in Seattle,
Bittrex <a href="https://www.financemagnates.com/cryptocurrency/bittrex-goes-bankrupt-with-us-treasury-its-largest-creditor/" target="_blank" rel="follow">filed
for bankruptcy</a> in May
following the SEC's allegations regarding its operations as an
unregistered securities exchange. on April 30, the company terminated its activities in the
US, clarifying that the bankruptcy filing will not affect its
global operations offered through Bittrex Global, which caters to customers
outside the US.</p><p>Amidst the bankruptcy, Bittrex said that it still holds cryptocurrency assets belonging to US
customers who had not withdrawn their funds prior to April 30, according to a
report by Reuters. Filed in a court in Wilmington, Delaware, Bittrex's
bankruptcy filing shows that the company is holding between USD $500 million and USD
$1 billion in <a href="https://www.financemagnates.com/cryptocurrency/bankrupt-bittrex-to-begin-customer-payouts-despite-us-objections/" target="_blank" rel="follow">both
assets and liabilities</a>.</p><p>Bittrex's case is not an
isolated incident, as the SEC has targeted other major cryptocurrency
exchanges, including Coinbase and Binance, with similar charges. In the past, the regulator
has stated that cryptocurrencies are securities that must be
brought under its purview.</p>
This article was written by Jared Kirui at www.financemagnates.com.
https://www.financemagnates.com//cryptoc...s-charges/
<p>The bankrupt cryptocurrency exchange, Bittrex has agreed
to pay the Securities and Exchange Commission (SEC) a fine of USD $24 million.
The settlement is related to allegations that the cryptocurrency
exchange offered unregistered securities to investors in the US.</p><p>According to the
regulator, Bittrex operated as a securities <a href="https://www.financemagnates.com/terms/e/exchange/" class="terms__main-term" id="b5da6e64-2afe-421d-9b81-16404b7d59d6">exchange</a>, broker, and
clearinghouse without being properly registered. Of the sum, Bittrex will
pay the regulator USD $14.4 million constituting disgorgement, USD $4 million as prejudgment interest and USD $5.6 million in civil
money penalties.</p><p>SEC's Allegations</p><p>The <a href="https://www.financemagnates.com/tag/us-sec/" target="_blank" rel="follow">SEC's</a> allegations extend further, claiming that
Bittrex instructed crypto issuers to remove public statements that could
potentially suggest their transactions might have violated the regulations.
However, the exchange neither acknowledged nor refuted the claims in the
settlement.</p><p>The terms of the settlement are
reportedly subject to approval by the <a href="https://www.financemagnates.com/terms/b/bankruptcy/" class="terms__secondary-term" id="41b3ef0d-d805-441d-8443-121890264e94">bankruptcy</a> court, considering Bittrex's recent bankruptcy filing. Thus, the exchange has a 90-day window to pay the
fine. The failure to make this restitution could result in the regulator raising further charges against the
company. </p><p>The SEC's Enforcement
Director, Gurbir Grewal, <a href="https://www.sec.gov/news/press-release/2023-150" target="_blank" rel="follow">said</a>: "Today's settlement makes clear that you
cannot escape liability by simply changing labels or altering descriptions
because what matters is the economic realities of those offerings."</p><p>Bankruptcy Filing</p><p>Based in Seattle,
Bittrex <a href="https://www.financemagnates.com/cryptocurrency/bittrex-goes-bankrupt-with-us-treasury-its-largest-creditor/" target="_blank" rel="follow">filed
for bankruptcy</a> in May
following the SEC's allegations regarding its operations as an
unregistered securities exchange. on April 30, the company terminated its activities in the
US, clarifying that the bankruptcy filing will not affect its
global operations offered through Bittrex Global, which caters to customers
outside the US.</p><p>Amidst the bankruptcy, Bittrex said that it still holds cryptocurrency assets belonging to US
customers who had not withdrawn their funds prior to April 30, according to a
report by Reuters. Filed in a court in Wilmington, Delaware, Bittrex's
bankruptcy filing shows that the company is holding between USD $500 million and USD
$1 billion in <a href="https://www.financemagnates.com/cryptocurrency/bankrupt-bittrex-to-begin-customer-payouts-despite-us-objections/" target="_blank" rel="follow">both
assets and liabilities</a>.</p><p>Bittrex's case is not an
isolated incident, as the SEC has targeted other major cryptocurrency
exchanges, including Coinbase and Binance, with similar charges. In the past, the regulator
has stated that cryptocurrencies are securities that must be
brought under its purview.</p>
This article was written by Jared Kirui at www.financemagnates.com.
https://www.financemagnates.com//cryptoc...s-charges/