- SEC said it settled a dispute with the Bittrex exchange.
- The company left the U.S. in early April 2023, but was later sued by the agency.
- It was accused of violating industry law.
- In May 2023, the company declared bankruptcy.
The U.S. Securities and Exchange Commission (SEC) said cryptocurrency exchange Bittrex has agreed to pay a fine. The regulator filed a lawsuit against the platform in April 2023.
The company was accused of promoting securities without a license. OMG, DASH, ALGO, TKN, NGC and IHT tokens are among them.
According to the regulator’s statement, the exchange, its overseas affiliate and ex-CEO William Shihara did not confirm or deny the allegations. However, they are willing to pay a $24 million fine.
“For a long time, Bittrex has worked with token issuers to rid their offerings of any signs of an investment contract. All for one purpose – to circumvent the federal securities laws. However, they failed,” Gurbir Grewal, head of the regulator’s enforcement division.
Remember, Bittrex exited the U.S. market even before the SEC’s action. Already in early May 2023, the platform declared bankruptcy.
In July, a regulator in Florida joined the investigation into the exchange’s operations. The company and its former CEO had said they were prepared to sue the SEC, but the regulator’s new statement indicates otherwise.
The company and its former CEO have said they are prepared to sue the SEC, but the regulator’s new statement indicates otherwise.