The U.S. Securities and Exchange Commission today charged cryptocurrency company Bittrex Inc., as well as former Chief Executive Officer William Shihara, for operating an unregistered securities exchange. The agency filed the complaint with the U.S. Distinct Court in Western Washington. Earlier this year, the SEC stated that it believes many popular cryptocurrencies could be considered securities. Companies that trade in securities must register their activities with the agency. According to the SEC, Bittrex has failed to meet that requirement. Bittrex launched in 2014 and subsequently became one of the world’s 50 largest cryptocurrency exchanges. According to the SEC, the company generated $1.3 billion in revenue between 2017 and 2022. Shihara, one of the original co-founders, was the company’s CEO from its launch until 2019. The SEC is accusing Bittrex of running an unregistered securities exchange. Moreover, the company is being charged with operating as an unregistered broker and clearing agency. A broker coordinates securities transactions between investors, while a clearing agency manages the logistics involved in carrying out those transactions. The SEC is also charging Shihara in connection with the matter. Bittrex provided a feature that allowed users to issue new cryptocurrencies through its platform. According to the SEC, Shihara instructed cryptocurrency issuers to delete statements containing “investment related terms” so as to avoid drawing the attention of regulators.
Full story : SEC charges cryptocurrency exchange Bittrex and former CEO William Shihara.