The SEC on Monday charged crypto exchange Bittrex with operating as an unregistered securities exchange, broker-dealer, and clearinghouse.
The United States Securities and Exchange Commission (SEC) charged cryptocurrency exchange Bittrex and its former CEO, William Shihara, for operating an illegal securities exchange, broker-dealer and clearinghouse, The Wall Street Journal (WSJ) reports.
The agency also charged Bittrex’s foreign affiliate, Bittrex Global GmbH, for “failing to register as a national securities exchange.” The suit comes a day after news broke that the exchange received a Wells Notice from the agency. The notice was issued despite Bittrex preparing to shut down operations in the U.S.
According to Bittrex’s general counsel, David Maria, the exchange received a Wells Notice from the enforcement division of the SEC in March. A Wells Notice is a formal notice issued by the SEC stating the agency is considering legal action against an entity or individual.
Bittrex To Shut Down U.S. Operations
The exchange announced last month that it plans to halt services in the U.S. due to economic and regulatory concerns. The firm advised customers to withdraw their funds by April 30, 2023.
Maria said Bittrex discussed with the agency in late 2022 how to register its operations. According to counsel, the exchange could not comply with the SEC’s rules unless it essentially ceased all its revenue-producing services in the U.S.
Bittrex was unable to comply with the SEC’s regulation over the agency’s failure to provide clear guidelines for crypto in the first instance, said Maria.
The lack of regulatory clarity here results in substantial costs and no certainty as to what can and can’t be offered.
SEC Officially Charges Bittrex
According to Reuters, the SEC alleges that Shihara coordinated with crypto asset
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Author: Jana Serfontein
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