Bittrex Global is making strategic moves to attract market participants who are increasingly wary of the U.S. regulatory landscape. This comes after the firm’s recent settlement with the United States Securities and Exchange Commission (SEC).
In April, the SEC took enforcement action against Bittrex and its U.S. counterpart for allegedly operating as unregistered exchanges. The settlement was reached last Thursday.
Bittrex Global’s CEO, Oliver Linch, has voiced reassurances to those concerned about U.S. regulatory uncertainties. He emphasized that Bittrex Global is ready to serve those seeking to engage with a non-U.S. regulated digital assets exchange.
Interestingly, Bittrex Global will not have to pay any amount to settle the enforcement action. Andrew Michaelson, Bittrex Global’s legal counsel, highlighted the uniqueness of this outcome, stating that the company can now focus on its vision for the future of crypto without the burden of a financial settlement.
However, the U.S. arm of the crypto exchange wasn’t-could have been more fortunate. They agreed to a $24 million settlement with the SEC. This comes after the Seattle-based discussion filed for Chapter 11 bankruptcy protection in May, revealing that Bittrex has over 100,000 creditors and assets and liabilities estimated to be between $500 million and $1 billion.
The SEC’s charges in April were comprehensive. They accused the U.S. arm of the exchange and its co-founder, William Shihara, of operating as unregistered entities in the securities domain. The SEC also alleged that Bittrex Global failed to register as “a national securities exchange.” The regulator claimed that Bittrex and Shihara directed token listing applicants to remove online statements that indicated they were investment contracts in an attempt to sidestep federal securities laws.
Gurbir S. Grewal, director of the SEC’s enforcement division, commented on Bittrex’s actions, stating that the firm had worked for years with token issuers to “scrub” their online statements of any indications that they were investment contracts. He emphasized that their efforts to evade the federal securities laws could have been more successful.
Bittrex Global’s recent actions and the SEC’s enforcement highlight crypto firms’ challenges and uncertainties in the U.S. regulatory environment. As the landscape evolves, companies like Bittrex Global strategize to navigate these complexities and continue their operations.
