SNEAK PEEK
- Bittrex faces potential regulatory action from the SEC.
- The SEC identified six tokens on Bittrex that it considers securities.
- Bittrex is winding down US operations due to regulatory and economic challenges.
Bittrex, a US-based crypto exchange, is reportedly facing potential regulatory action from the US securities regulator. Despite plans to shut down its local operations, the exchange’s past practices may have drawn the attention of authorities.
Bittrex, the #cryptocurrency exchange based in the United States, is said to be under threat of possible action from the U.S. securities regulator, even as it plans to shut down its local operations. @BittrexExchange #Bittrex #exchange #Crypto #Cryptonews #InvestorBites
— Investor Bites (@InvestorBites) April 17, 2023
Reports indicate that the US Securities and Exchange Commission (SEC) has identified six tokens on Bittrex that it considers securities. Notably, the list includes the native tokens of Algorand, ALGO, and the privacy-focused cryptocurrency Dash.
On the contrary, Bittrex claims that the SEC refused to clarify what digital assets it considers securities. According to attorney Jeremy Hogan, the SEC’s action raises questions about the regulatory agency’s commitment to investor protection.
“…on multiple occasions, we (Bittrex) asked them (the SEC) to tell us what digital assets they viewed as securities…They refused to do so.”
So the SEC let Bittrex sell unregistered securities for years, and we’re still supposed to believe it’s about “investor protection”? https://t.co/CcmqE8O5C1
— Jeremy Hogan (@attorneyjeremy1) April 17, 2023
On the other hand, Bittrex knew of the SEC’s intention to sue the exchange in March, which may have played a role in the decision to wind down its US operations. Bittrex stated that its decision to halt its US operations was due to the complex regulatory and economic landscape.
On the same accord, the SEC also leveled charges of unregistered operation as a broker, exchange, and clearing agency against Bittrex. Moreover, the charges are not limited to the company, as former CEO William Shihara and Bittrex Global GmbH, the exchange’s international affiliate, are also implicated.
Similarly, Bittrex US-based customers have been given a deadline of April 24 to withdraw funds via wire transfer and April 27 to withdraw via ACH. According to the exchange, failing to meet these deadlines could result in the remaining assets being unavailable for an extended period. The exchange’s customers in the US are advised to act promptly to avoid any potential disruptions to their accounts.
