ShapeShift Settles SEC Charges It Sold Crypto Securities

ShapeShift, a crypto exchange that previously operated in Denver, Colorado, has settled charges filed by the Securities and Exchange Commission (SEC). The SEC accused ShapeShift of acting as an unregistered dealer for crypto securities before 2021. As part of the settlement, ShapeShift has agreed to pay a $275,000 fine and cease violating the Securities Exchange Act. The exchange offered approximately 79 crypto assets to its customers, some of which were classified as investment contracts. ShapeShift operated as an unregistered dealer between 2014 and 2021, similar to other U.S. crypto exchanges such as Coinbase, Kraken, and Binance.US. ShapeShift shut down its U.S. exchange operations in 2021. The cease-and-desist findings are specific to ShapeShift and do not bind any other individuals or entities. Neither the SEC nor ShapeShift founder Erik Voorhees have commented on the matter.