Bittrex to Pay $24M in SEC Settlement for Crypto Exchange Case

Bittrex to Pay $24M in SEC Settlement for Crypto Exchange Case

A large settlement agreement for $24 million has been reached between the United States Securities and Exchange Commission (SEC) and Bittrex. It is a well-known cryptocurrency exchange in the United States. In response to an SEC lawsuit, Bittrex and former CEO William Shihara face accusations of illegal securities exchange operations.

The SEC probed Bittrex’s actions from 2017 to 2022, alleging earnings of around $1.3 billion through deemed unlawful practices. It allegedly advised cryptocurrency issuers to remove incriminating statements regarding securities law violations, as per the oversight body.

According to the settlement’s conditions, Bittrex must pay up $14.4 million in disgorgement, $4 million in prejudgement interest, and $5.6 million in civil money penalties. Notably, it did not either accept or deny the SEC’s accusations.

Bittrex Faces Intensifying Regulatory Scrutiny Amidst Multimillion-Dollar Settlement

This development is only one aspect of the increasing scrutiny Bittrex is receiving from different American regulatory organizations. The exchange stopped operating in the United States after declaring bankruptcy in May. In 2022, the US Treasury fined Bittrex $53 million for purportedly breaching multiple American sanctions programs. The Treasury Department has never  levied a fine this size on a Bitcoin company.

The Office of Foreign Assets Control (OFAC) imposed a $24 million fine on Bittrex. FinCEN also fined them $29 million. These steps highlight the escalating regulatory scrutiny that led to the most recent SEC settlement.

Bittrex’s multimillion-dollar settlement underscores the imperative of business compliance, amidst the cryptocurrency sector navigating heightened government monitoring. This settlement’s outcome could influence how other cryptocurrency exchanges handle future regulatory disputes.



About Valbona

I am a passionate and dedicated student studying Computing and Information Technology at an American university. With a love for reading, writing, and research, I possess technical and problem-solving skills. I have a vision to make a meaningful impact in the world of technology, I aspire to develop innovative solutions that improve lives and empower individuals in the digital age.

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