Bittrex Sued By SEC For Operating Illegal Exchange Even As It Shutters US Ops
In its latest cryptocurrency crackdown, the U.S. Securities and Exchange Commission (SEC) sued Bittrex for breaking securities laws, despite the exchange actively winding down its U.S. operations.
According to the SEC's complaint, Bittrex and its former CEO Bill Shihara knowingly circumvented the registration requirements of the federal securities laws by instructing issuers of crypto assets to delete certain statements from their offering materials that would indicate that they were securities. Bittrex also earned at least $1.3 billion in revenues from transaction fees from investors, including U.S. investors, without registering or complying with U.S. securities laws.
Last month, Bittrex announced a planned shutdown of its operations in the United States by the end of April, citing concerns related to regulatory uncertainty.
This lawsuit is part of the SEC's ongoing efforts to protect investors and ensure compliance in the crypto markets. SEC Chair Gary Gensler said «the crypto markets suffer from a lack of regulatory compliance, not a lack of regulatory clarity» and «cosmetic alterations did nothing to change the underlying economic realities of the offerings and Bittrex's conduct.»
«Bittrex repeatedly chose profits over investor protection,» said SEC's Director of Enforcement Gurbir S. Grewal.
Bittrex is not the only exchange with legal challenges from the SEC. U.S.-based crypto exchange Coinbase has revealed they received a «Wells notice,» which indicates they could soon be facing enforcement action from the SEC as well.
The SEC has been criticized for its recent enforcement actions against crypto firms and the crypto community says it needs more clarity on rules. Gensler has repeatedly said many crypto trading
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