SEC Chases Bittrex Out The Door With New Charges

The U.S. Securities and Exchange Commission has continued its holy war against all things Crypto as it has recently filed a complaint against Bittrex as one of the few US-based centralized crypto exchanges prepares to exit the US market. Talk about a slap in the backside as you leave…

The SEC alleges that Bittrex (and its co-founder and former CEO William Shihara). operated an unregistered national securities exchange, broker, and clearing agency. Bittrex Global, a foreign affiliate of Bittrex, was also charged with failing to register as a national securities exchange in connection with its operation of a single shared order book along with Bittrex.

The SEC’s charges allege that Bittrex and Shihara violated four provisions of the Exchange Act:

Section 5(a), which prohibits the offer or sale of securities without registration;

Section 5(b), which prohibits the use of a national securities exchange for the offer or sale of securities without registration;

Section 15(a), which requires brokers and dealers to register with the SEC; and

Section 17A, which requires clearing agencies to register with the SEC.

The SEC is seeking a permanent injunction, disgorgement of ill-gotten gains, and civil penalties.

Great job, SEC.