SEC Accuses Bittrex of Violating Federal Laws in Lawsuit Over Crypto Exchange Operations
Bittrex, a crypto exchange, has been accused by the U.S. Securities and Exchange Commission (SEC) of violating federal statutes by simultaneously operating as a national securities exchange, broker, and clearing agency. The former CEO Bill Shihara and Bittrex Global GmbH are also facing charges. The SEC alleges that Bittrex collaborated with crypto issuers to remove statements that the regulator would investigate, such as price predictions and statements implying an “expectation of profit.”
In a press release on Monday, the SEC revealed that Bittrex should have registered as an exchange, clearing agency, and broker, as it offered the services of all three entities. The regulator argues that Bittrex worked with crypto issuers to eliminate “problematic statements” that could cause issues with the SEC’s investigations. The lawsuit against Bittrex is expected to send a message to other non-compliant crypto market intermediaries, according to Gurbir Grewal, the SEC’s enforcement director.
The SEC’s lawsuit against Bittrex is part of the regulator’s efforts to monitor and regulate the rapidly growing cryptocurrency market. The case also highlights the importance of complying with SEC regulations for crypto market intermediaries. The allegations against Bittrex show that the SEC is actively pursuing non-compliant crypto companies, which could lead to increased scrutiny and potential legal action against others in the industry.
