Bittrx Agrees $24 mn SEC Settlement
To resolve SEC claims that it ran an unlicensed national securities exchange, broker, and clearing agency, cryptocurrency company Bittrex has agreed to pay $24 million.
William Shihara, the former CEO of the company, and Bittrex Global, a foreign affiliate, have both agreed to resolve accusations.
In April, the SEC filed a complaint against Bittrex, alleging that the company had assisted US investors with cryptocurrency assets that were being offered and sold as securities.
Bittrex and Shihara were accused of directing issuers to delete problematic statements from public channels to avoid regulatory investigation of crypto assets. The SEC claims Bittrex worked with token issuers to evade federal securities laws by scrubbing their online statements. Bittrex had previously announced its intention to shut down in the US by April. The firm has not admitted or denied the SEC’s allegations but has agreed to disgorgement of $14.4 million, prejudgment interest of $4 million, and a civil penalty of $5.6 million.
(With inputs from Shikha Singh)
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