According to the latest reports, popular crypto exchange Bittrex has allegedly been notified by the SEC of a potential enforcement action, claiming that the company violated regulations regarding investor protection.
The WSJ reported that “The Securities and Exchange Commission’s enforcement staff told Bittrex in March it would recommend that the agency sue the company over alleged violations of investor-protection laws, according to David Maria, the company’s general counsel.”
Meanwhile, in March, Bittrex already decided to no longer operate in the US due to the “Regulatory Environment.” Richie Lai, co-founder, and CEO of Bittrex exchange decided to close the US business after seeing the difficulties of surviving in the market.
The SEC said that Bittrex had broken the law by operating as an exchange, broker-dealer, and clearinghouse without registering with the agency in the Wells notice send to the exchange.
The SEC and Bittrex discussed how to register their business in late 2022, according to Bittrex’s general counsel. Bittrex discovered that there was no way to abide by the SEC’s regulations without essentially ending all of its revenue-generating operations in the nation.
Due to the company’s decision to cease business in the United States, Bittrex is unsure whether the SEC will bring a lawsuit in this matter.
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