Shillong, August 11: Crypto trading platform Bittrex and its co-founder, William Shihara, have reached an agreement with the US Securities and Exchange Commission (SEC) to settle charges. They will pay $24 million for allegedly operating as an unregistered exchange, broker, and clearing agency. Bittrex’s foreign affiliate, Bittrex Global GmbH, is also settling charges related to failing to register as a national securities exchange.
As per IANS, SEC’s Division of Enforcement Director, Gurbir S. Grewal, stated that Bittrex attempted to evade federal securities laws by altering online statements from token issuers. The settlement emphasizes that liability cannot be avoided through label changes, as the economic realities of the offerings matter.
The SEC’s complaint accuses Bittrex of providing services to US investors involving crypto assets sold as securities without proper registration. Bittrex and Shihara allegedly instructed issuers to remove “problematic statements” that could attract regulatory scrutiny.
The settlement includes a total payment of $24 million, with Bittrex and Bittrex Global agreeing to pay $14.4 million, $4 million in prejudgment interest, and a $5.6 million civil penalty. The defendants do not admit or deny the allegations as part of the agreement.
