Crypto exchange Bittrex Global to pay $24 million to settle U.S. lawsuit

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Crypto exchange Bittrex Global to pay $24 million to settle U.S. lawsuit

Bittrex, which ceased U.S. operations earlier this year, will pay $24 million to settle U.S. securities and exchange fees for running an unlicensed exchange, broker, and clearing agency.

What is Bittrex's deal with Bittrex?

Bittrex and Bittrex Global will pay $14.4 million of disgorgement, $4 million in prejudgment interest, and $5.6 million in civil penalties to resolve the legal dispute with the U.S. regulator. The settlement is awaiting a court's approval. Bittrex Global is the worldwide branch of Bittrex, specializing in the Bittrex brand.

Bittrex and its co-founder and ex-CEO, William Shihara, settled the suit without admitting or denying the SEC's allegations. In April, the SEC accused Bittrex and Shihara of conducting an unregistered national securities exchange, broker, and clearing agency since 2014.

Bittrex has also accused Bittrex of working with token issuers to'scrub' their online statements of any signs they were investment contracts to evade federal securities laws.

In 2019, Shihara, who quit Bittrex in 2019, said the settlement was a 'good outcome' and a Bittrex spokeswoman said the firm was 'delighted' with the outcome of the case.

In October 2022, Bittrex faced other actions from the U.S. Department of the Treasury, which resulted in a $24 million and a $29 million settlement. In March, the exchange said it would shut down its operations in the U.S. because of the regulatory environment and filed for Chapter 11 bankruptcy in May.

The crypto sector has faced a significant setback in recent years when it comes to the SEC's enforcement actions. Crypto exchanges Binance, Coinbase, and Kraken have also faced charges from the Financial Conduct Authority.

The SEC also plans to appeal the decision in the case of Ripple Labs, where a federal judge ruled that XRP is not a security. Crypto promoter Richard Heart has been charged by the SEC for activities related to his HEX crypto token.

Despite all these regulatory measures, bitcoin is currently up 78% since the beginning of the year.