– Bittrex crypto-asset trading platform has agreed to pay the SEC a fine of $24 million.
– The penalty comes after the US SEC clamps down on platforms believed to be operating as unregistered brokers.
– The financial regulator had brought the charges against the platform and its CEO, just like it did in the Binance case.
Bittrex cryptocurrency exchange is set to pay a heavy fine after the US Securities and Exchange Commission (SEC) accused the firm of violating securities laws.The penalty comes as the financial regulator continues to impose its enforcement actions on the cryptocurrency industry.Binance and Coinbase are among those targeted.
Also Read:
Aave token holders want CRV borrowing disabled from its Ethereum and Polygon V3 markets after Curve exploit
Bittrex to pay a $24 million fine to the SEC
Like Coinbase exchange and Binance before it, the financial regulator had accused the Washington-based trading firm of operating unregistered securities, playing broker for unlicensed dealings.Specifically, the financial regulator’s criminal charge claims that the platform “facilitated the trading of securities without prior registration by the SEC,” adding that they failed to comply with the commission’s rules and regulations.
BITTREX AGREED TO PAY $24 MILLION TO SETTLE CLAIMS BY THE U.S.SECURITIES AND EXCHANGE COMMISSION -COURT FILING – RTRS— Tree News (@News_Of_Alpha)
[August 10, 2023]
Other allegations include evidence tampering, with the commission calling out the trading platform from instructing issuers of
cryptocurrency assets to delete some statements from public reach capable of drawing the attention of regulators.According to the directive, such platforms include “price forecasts, profit expectations, and investment-related terms.”
Notably, the SEC
sued Binance and its CEO Changpeng Zhao (CZ) for the same crime, saying they commingled and diverted billions of dollars of customer funds to a third-party entity owned by CZ.Further, the SEC claimed that Binance moved around the users’ crypto and fiat assets in ways other registered brokers would not.
Nevertheless, the world’s largest crypto exchange fought the allegations, committing to fighting the charges with numerous development since the June 5 allegations, including the judge attempting to
broker a compromise.
For its part, however, Bittrex has opted to pay the fine, as the SEC claims the exchange earned at least $1.3 billion from investors’ transaction fees alone, while serving its clients in the US and overseas as a “broker, exchange, and clearing house,” without SEC registration.
The $24 million fine is to be paid within two months of Bittrex Exchange filing a liquidation plan.It is worth to mention, however, that the firm neither admitted nor denied the claims, with no public statement issued that could point to the SEC lacking evidence for its allegations.
A breakdown of the $24 million fine is that $14.4 million comprises disgorgement, $4 million goes to prejudgment interest on that disgorgement and $5.6 million toward civil money penalties.
Bitrexx subsidiary in the mix
Besides Bittrex, the SEC is also targeting the trading platform’s subsidiary operating abroad, Bittrex Global GmbH, calling it for “failure to register as a notional stock exchange,” citing operating a single joint order book with its parent firm, Bittrex.
Citing SEC enforcement director Gurbir Grewal on the matter:
I am grateful to the SEC staff for aggressively pursuing non-compliance in the crypto industry, resolving this matter, and bringing additional relief to harmed investors… Today’s settlement makes clear that you cannot escape liability by simply changing labels or altering descriptions because what matters is the economic realities of those offerings.
Cryptocurrency prices FAQs
How do new token launches or listings affect cryptocurrency prices?
Token launches like Arbitrum’s ARB airdrop and Optimism OP influence demand and adoption among market participants.Listings on crypto exchanges deepen the liquidity for an asset and add new participants to an asset’s network.This is typically bullish for a digital asset.
How do hacks affect cryptocurrency prices?
A hack is an event in which an attacker captures a large volume of the asset from a DeFi bridge or hot wallet of an exchange or any other crypto platform via exploits, bugs or other methods.The exploiter then transfers these tokens out of the exchange platforms to ultimately sell or swap the assets for other cryptocurrencies or stablecoins.Such events often involve an en masse panic triggering a sell-off in the affected assets.
How do macroeconomic releases and events affect cryptocurrency prices?
Macroeconomic events like the US Federal Reserve’s decision on interest rates influence risk assets like Bitcoin, mainly through the direct impact they have on the US Dollar.An increase in interest rate typically negatively influences Bitcoin and altcoin prices, and vice versa.If the US Dollar index declines, risk assets and associated leverage for trading gets cheaper, in turn driving crypto prices higher.
How do major crypto upgrades like halvings, hard forks affect cryptocurrency prices?
Halvings are typically considered bullish events as they slash the block reward in half for miners, constricting the supply of the asset.At consistent demand if the supply reduces, the asset’s price climbs.
This has been observed in Bitcoin and Litecoin.
Information on these pages contains forward-looking statements that involve risks and uncertainties.Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets.You should do your own thorough research before making any investment decisions.FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements.It also does not guarantee that this information is of a timely nature.
Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress.All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.
The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned.
The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations.The author makes no representations as to the accuracy, completeness, or suitability of this information.FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use.Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Join Telegram
Follow us on Telegram
Stay updated of all the news
Recommended Content
Editors’ Picks
Bitcoin price flirts with $30,000 level after lower-than-expected US inflation data
The US Consumer Price Index (CPI), an economic indicator that is considered a measure of inflation, largely influences US Dollar dynamics and could help market participants predict the direction in which risk assets like Bitcoin and altcoin prices are headed.
More Bitcoin News
Worldcoin spends nearly $500,000 in Ethereum gas fees, here’s how EIP-4844 can help save millions annually
The Worldcoin authority spent nearly $500,000 in gas fees on the Ethereum blockchain.The next big upgrade on the ETH network, EIP-4844, could help tackle the challenge of high gas fees for users and save millions of dollars annually for projects like Worldcoin.
More Worldcoin News
Ripple XRP update: SEC to appeal XRP ruling, non-security status of altcoin likely at risk
US SEC is intent on appealing the XRP lawsuit outcome.In the latest development in the SEC vs.Ripple lawsuit, Judge Torres announced pretrial schedule.
XRP holder community speculates the loss of XRP’s non-security status.Judge Analisa Torres revealed that the court seeks to schedule a jury trial in Q2 2024.
More Ripple News
Despite capturing nearly 2% of Ethereum userbase, Arbitrum’s ARB price is likely to crash 10% soon
Arbitrum price trades close to a critical support level, a breakdown of which could lead to a steep correction.ARB bulls have one chance to take control and push the market value higher.
More Arbitrum News
Bitcoin price holds above $29,000 after below-expectations US NFP data
Bitcoin price is currentlytrading near a six week low.Post the US NFP data release for July, the asset sustained above the 29,000 level, showing likelihood of price recovery in August.
Read full analysis.
