US crypto exchange Bittrex faces SEC action

American cryptocurrency exchange Bittrex may face US securities regulatory action even as it plans to close its doors.

The SEC’s enforcement division is considering suing Bittrex for alleged investor protection violations, The Wall Street Journal reported on April 16. reported.

According to David Maria, Bitrex’s general counsel, the Enforcement Division notified Bitrex of the potential SEC action in March. At that time, the crypto company had already begun winding down its business in the United States, according to the lawyer.

In that notice, also known as a Wells Notice, the SEC wrote that Bittrex violated the law by acting as an exchange, broker-dealer and clearing house without registering with the agency.

According to Bitrex’s general counsel, the company has spoken to the SEC in late 2022 about how to register its operations. The crypto firm noted that there was no way to comply with the SEC’s rules without ceasing all income-generating activities in the country.

David Maria asserted that Bittrex failed to comply with SEC regulations because the agency lacked clear cryptocurrency regulations. He explained:

“The lack of regulatory clarity here leads to significant costs and uncertainty about what can and cannot be provided.”

According to Maria, Bittrex does not know if the SEC will file a lawsuit now that the company has ceased operations in the United States. If the agency decides to take action, Bitrex will take legal action if “regulators provide a reasonable remedy,” the lawyer continued.

On March 31, Bittrex announced that the exchange would cease operations in the United States due to regulatory uncertainty and the economic situation. will hire. The exchange advised US customers to withdraw their money by April 30, 2023.

Bitrex had some difficulties before. In 2022, Bitrex announced itself Payment of penalty Over $29 million. Between 2014 and 2017 it was fined for violating sanctions related to Crimea, Cuba, Iran, Sudan and Syria.