{"id":19944,"date":"2023-04-17T16:24:53","date_gmt":"2023-04-17T16:24:53","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/sec-charges-crypto-exchange-bittrex-with-operating-unregistered-exchange-broker-and-clearing-agency-bitcoin-news\/"},"modified":"2023-04-17T16:24:53","modified_gmt":"2023-04-17T16:24:53","slug":"sec-charges-crypto-exchange-bittrex-with-operating-unregistered-exchange-broker-and-clearing-agency-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/sec-charges-crypto-exchange-bittrex-with-operating-unregistered-exchange-broker-and-clearing-agency-bitcoin-news\/","title":{"rendered":"SEC Charges Crypto Exchange Bittrex With Operating Unregistered Exchange, Broker, and Clearing Agency \u2013 Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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After the report revealing that the cryptocurrency exchange Bittrex had received a Wells Notice from the U.S. Securities and Exchange Commission (SEC), the securities regulator charged Bittrex and the company\u2019s CEO on April 17 for \u201coperating an unregistered exchange, broker, and clearing agency.\u201d<\/strong><\/p>\n

Following the Wells Notice, SEC Charges Bittrex for Violating Federal Laws<\/h2>\n

On Monday, the U.S. Securities and Exchange Commission (SEC) charged another cryptocurrency exchange, accusing<\/a> the trading platform Bittrex of operating \u201can unregistered national securities exchange, broker, and clearing agency.\u201d Since 2014, Bittrex allegedly sold crypto assets that were \u201coffered and sold as securities.\u201d The SEC\u2019s complaint was filed in the U.S. District Court for the Western District of Washington.<\/p>\n

The SEC further alleged that Bittrex Global should have registered the exchange, and the regulator claims the two entities leveraged a \u201cshared order book.\u201d The complaint also notes that Bittrex should have registered as a clearing agency and a broker. \u201c[Bittrex] regularly engaged in the business of effecting transactions for the accounts of others in crypto assets that were offered and sold as securities,\u201d the SEC\u2019s complaint insists.<\/p>\n

\u201cToday we\u2019re holding Bittrex accountable for its noncompliance,\u201d SEC chair Gary Gensler wrote in a statement on Monday. \u201cToday\u2019s action, yet again, makes plain that the crypto markets suffer from a lack of regulatory compliance, not a lack of regulatory clarity. \u201cAs alleged in our complaint, Bittrex and issuers that it worked with knew the rules that applied to them but went to great lengths to evade them by directing issuer-applicants to \u2018scrub\u2018 offering materials of information indicating that certain crypto assets were securities.\u201d<\/p>\n

The SEC chairman added:<\/p>\n

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Further, Bittrex, as alleged, failed to register and comply with U.S. securities laws as an exchange, broker-dealer, and clearing agency. Cosmetic alterations did nothing to change the underlying economic realities of the offerings and Bittrex\u2019s conduct.<\/p>\n<\/blockquote>\n

The SEC\u2019s complaint<\/a> follows the recent news<\/a> that Bittrex received a Wells notice informing the cryptocurrency exchange of possible enforcement action. Bittrex\u2019s general counsel, David Maria, told the Wall Street Journal that if the SEC decided to sue the firm, the exchange would contest the action in court unless the regulator \u201cpresented a reasonable settlement offer.\u201d At the time of writing, the SEC\u2019s complaint doesn\u2019t offer any settlement, and the court filing says a \u201cjury trial [is] demanded.\u201d In addition to the cryptocurrency exchange Bittrex Global, the company\u2019s CEO, William Hiroaki Shihara, is also named in the case.<\/p>\n

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\nTags in this story
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accounts<\/a>, Bittrex<\/a>, broker<\/a>, clearing agency<\/a>, Complaint<\/a>, Court Filing<\/a>, crypto exchange<\/a>, Crypto markets<\/a>, Cryptocurrency<\/a>, Cryptocurrency Exchange<\/a>, cryptocurrency industry<\/a>, David Maria<\/a>, economic realities<\/a>, enforcement action<\/a>, Gary Gensler<\/a>, issuer-applicants<\/a>, Jury Trial<\/a>, Lawsuit<\/a>, offerings<\/a>, regulatory clarity<\/a>, Regulatory Compliance<\/a>, SEC<\/a>, Securities<\/a>, securities laws<\/a>, settlement offer<\/a>, shared order book<\/a>, transactions<\/a>, unregistered exchange<\/a>, Wall Street Journal<\/a>, wells notice<\/a>, William Hiroaki Shihara<\/a><\/div>\n<\/div>\n

What are your thoughts on the SEC\u2019s latest enforcement action against Bittrex, and do you think it will lead to increased regulatory scrutiny in the cryptocurrency industry? Share your thoughts in the comments section below.<\/strong><\/em><\/p>\n

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\nJamie Redman <\/h6>\n

\nJamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

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