Crypto Exchange Bittrex Faces Legal Action from SEC Despite Shutdown Plans
The U.S.-based cryptocurrency exchange Bittrex is at risk of being targeted by the U.S. Securities and Exchange Commission (SEC), even after announcing its intentions to terminate domestic operations.
As per The Wall Street Journal, the SEC’s enforcement unit is contemplating advising the pursuit of legal action against Bittrex over suspected breaches concerning safeguarding investor interests.
The crypto firm had already begun the process of winding down its U.S. operations when it was notified of the potential enforcement action in March.
The SEC alleges that Bittrex violated laws by acting as an exchange, broker-dealer, and clearinghouse without registering with the regulator.
Bittrex had discussed with the SEC in late 2022 how to register its operations but found that there was no opportunity to follow the rules of the SEC without essentially ceasing all of its revenue-producing activities in the country.
Bittrex is unsure if the SEC will file a lawsuit against the company now that it is terminating operations in the United States.