Bittrex reached a $24 million settlement with the US Securities and Exchange Commission (SEC). Under this arrangement, Bittrex and Bittrex Global have settled with the federal regulator, agreeing to make payments totaling $14.4 million for disgorgement (repayment of unjust profits), $4 million for prejudgment interest, and $5.6 million in civil penalties to resolve the legal conflict.
Even though both parties were able to avoid the effort and cost of litigation, Bittrex CEO Oliver Linch said that “now is not the time for a victory lap.”
While Bittrex’s US arm agreed to pay $24 million in the settlement, it will refrain from acknowledging or refuting the accusations and is also restricted from issuing any public communication that could imply the absence of a factual foundation for the SEC’s allegations.
Deeming the resolution to be a quick one, considering pending lawsuits against Binance, Coinbase, etc., Bittrex’s boss Linch said in a statement,
“We are delighted that a settlement on these terms has been quickly reached. While it is good news for Bittrex Global, now is not the time for a victory lap. Instead, with this matter behind us, we can concentrate on building our vision for the future of crypto, as a regulated, mature, and sophisticated part of the wider financial ecosystem.”
Linch asserted that Bittrex Global dedicated significant resources to ensure that they do not accept US customers. The exec went on to state that the company solely caters to clients and provides services exclusively outside the US.
He further added that Bittrex Global is a non-US-regulated digital assets exchange that market participants around the world should engage with “who are increasingly wary of having any connection to the United States given its regulatory uncertainty.”
In an April filing, the SEC alleged that Bittrex’s US arm and its co-founder and former CEO, William Shihara, were involved in operating an unregistered national securities exchange, broker, and clearing agency. The financial regulator also initiated a distinct enforcement action against Bittrex Global for its management of a shared order book in conjunction with Bittrex.
The crypto exchange filed for bankruptcy in Delaware on May 8th, months after announcing it would shut down its operations in the country and weeks after being sued by the SEC. The regulatory authority’s enforcement actions prompted severe backlash from industry players.