Bittrex and Former CEO Settle Unregistered Securities Exchange Charges
Crypto trading platform Bittrex and its former CEO settle charges of operating an unregistered securities exchange by paying $24 million. Bittrex allegedly acted as an unregistered broker, exchange, and clearing agency while providing services connec...
Troy D. Hanson
August 11, 2023
The Securities and Exchange Commission (SEC) announced on Thursday that crypto trading platform Bittrex and its former chief executive, William Shihara, have agreed to settle charges related to operating an unregistered securities exchange.
According to the SEC's complaint filed on April 17, Bittrex allegedly acted as an unregistered broker, exchange, and clearing agency while providing services connected to crypto assets. The complaint further alleges that these crypto assets were offered and sold as securities.
In the settlement, both Bittrex and Shihara neither admit nor deny the allegations made by the SEC.
Additionally, the SEC claims that the defendants instructed issuers seeking to have their crypto listed on Bittrex's platform to remove any "problematic statements" that Shihara believed might trigger regulatory investigations into the security status of the asset.
Bittrex's foreign affiliate, Bittrex Global GmbH, is also part of the settlement agreement. The SEC alleges that Bittrex Global failed to register as a securities exchange.
As part of the settlement, Bittrex and Bittrex Global will pay a combined total of $24 million, subject to court approval.