Bittrex Targeted By SEC, Crypto Exchange Will About Regulatory Actions

JAKARTA - Bittrex, one of the largest crypto exchanges in the United States, is facing lawsuits from the Securities and Exchange Commission (SEC) for allegedly violating investor protection laws.

The crypto exchange, Bittrex, was charged by the SEC on charges of "operating an unregistered national securities exchange, broker, and clearing agent." The SEC indicted Bittrex of selling crypto assets offered and sold as securities since 2014. The SEC lawsuit was filed in the US District Court for Washington's Western District.

The SEC also accused Bittrex Global of supposed to list the exchange, and regulators claimed that the two entities used a "joint order book." The lawsuit also noted that Bittrex should register as a clearing agent and broker. "Bittrex is regularly involved in the business of making transactions for other people's accounts in crypto assets offered and sold as securities," the SEC lawsuit said.

"We will enforce the rules on non-compliant Bittrex," SEC chairman Gary Gensler said in a statement on Monday, April 17. "Today's action, once again, shows that the crypto market is suffering from a lack of regulatory compliance, not a lack of regulatory clarity. As alleged in our lawsuit, Bittrex and the exchange-working publishers know the rules apply to them but are trying hard to avoid them by directing publishers to 'clean up' offering material from information showing that some crypto assets are securities."

In addition, Bittrex, as allegedly, failed to register and comply with US securities laws as exchanges, brokers and clearing agents. Cosmetic changes do not change the basic economic reality of Bittrex offerings and behavior," Gary Gensler was quoted as saying by Bitcoin.com News.

Bittrex's general console, David Maria, told the Wall Street Journal that if the SEC decides to sue the company, the exchange will challenge the action in court unless regulators "promote a reasonable settlement offer."

These lawsuits came after Bittrex announced it would halt operations in the United States by the end of April, citing regulatory uncertainty. Bittrex had previously received a Wells Notice notification from the SEC's law enforcement division in March, signaling a potential law enforcement action.