Bittrex Reaches Agreement with SEC
Bittrex, a cryptocurrency exchange facing bankruptcy, and its CEO have reached a settlement with the Securities and Exchange Commission (SEC) for $24 million.
This follows the agency’s April charges against them for operating as an unregistered exchange.
The court document states that neither the exchange, its foreign affiliate, nor the former CEO admitted or denied the allegations. Bittrex Global GmbH, the foreign affiliate, agreed to settle charges related to failing to register as a national securities exchange, as stated by the SEC.
Gurbir S. Grewal, the director of the SEC’s enforcement division, emphasized that attempts to evade securities laws by altering descriptions would not escape liability. Former CEO Shihara called the settlement a positive outcome, highlighting the importance of striking a balance between innovation, entrepreneurship, consumer protection, and hoping the settlement contributes to that.
In May, Bittrex filed for Chapter 11 bankruptcy with estimated assets and liabilities between $500 million and $1 billion.
