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Embattled Crypto Exchange to Pay a $24 Million Penalty to Settle With SEC (Report)

Summary:
The once-prominent cryptocurrency exchange Bittrex has reportedly agreed to pay million in penalties to resolve its quarrel with the United States Securities and Exchange Commission (SEC). The agency has previously accused the platform of offering services to American clients without obtaining the necessary registration. The exchange shuttered its US operations and filed for bankruptcy protection shortly after the regulator targeted it. As reported by Bloomberg, Bittrex and its non-US subsidiary will part with million to settle allegations that it violated several securities rules while providing cryptocurrency services to American users. The company’s co-founder William Shihara called the settlement plan “a good outcome,” raising hopes that it could help the US

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The once-prominent cryptocurrency exchange Bittrex has reportedly agreed to pay $24 million in penalties to resolve its quarrel with the United States Securities and Exchange Commission (SEC).

The agency has previously accused the platform of offering services to American clients without obtaining the necessary registration.

The exchange shuttered its US operations and filed for bankruptcy protection shortly after the regulator targeted it.

  • As reported by Bloomberg, Bittrex and its non-US subsidiary will part with $24 million to settle allegations that it violated several securities rules while providing cryptocurrency services to American users.
  • The company’s co-founder William Shihara called the settlement plan “a good outcome,” raising hopes that it could help the US authorities create a balance between safeguarding investors and promoting innovation.
  • Bittrex and Shihara have been coping with severe issues over the past several months caused by the hostile stance of the SEC.
  • The firm terminated operations in the States at the end of March this year, citing the nation’s “regulatory and economic environment.” Nonetheless, it assured that “customer funds are safe, here and ready for retrieval.”
  • A few weeks later, the exchange received Wells Notice from the SEC. The latter alleged that Bittrex operated as an unregistered exchange, broker-dealer, and clearinghouse for securities. 
  • The company filed for Chapter 11 bankruptcy protection in the US approximately three weeks after the SEC’s attack. According to the filing, it had more than 100,000 creditors, with estimated liabilities and assets both worth between $500 million and $1 billion. 

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