Bittrex Global settles with SEC
Bittrex Global, the crypto currency exchange with offices in Bermuda and Liechtenstein, has reached a settlement with the US Securities and Exchange Commission.
The settlement is in relation to the SEC’s April 17 charge against the company for allegedly operating an unregistered exchange in the United States.
In a statement, Bittrex Global said: “Bittrex Global is very pleased to announce that, following submission of our motion to dismiss the SEC’s action against us in June, we have now reached a successful settlement.
“From the beginning, we have been optimistic and willing to work productively with the SEC to explain our position. We are delighted that we have been able to reach a settlement with the SEC and that both parties can avoid the effort and cost of litigation.
“To reach this speedy conclusion, the settlement agreement includes a $24 million payment, which will be paid by Bittrex Inc (also known as Bittrex US), and not by Bittrex Global.
“Now, the SEC has agreed to settle the case, with Bittrex Global neither admitting nor denying the allegations, the matter is fully behind us, and our attention can be completely focused on doing what we do best: providing our customers with the world’s most secure, innovative, and regulated exchange in the market.”
Oliver Linch, Bittrex Global CEO, said: “We are delighted that a settlement on these terms has been quickly reached. While it is good news for Bittrex Global, now is not the time for a victory lap.
“Instead, with this matter behind us, we can concentrate on building our vision for the future of crypto, as a regulated, mature, and sophisticated part of the wider financial ecosystem.
“That vision requires proper regulatory regimes that are fit for purpose, which is why Bittrex Global is proud to be regulated in Liechtenstein and Bermuda, two of the leading and most respected jurisdictions for regulatory oversight of crypto in the world.”
Mr Linch added: “Bittrex Global has made enormous investments to ensure that we do not accept US customers. We service clients and provide services exclusively outside the US.
“Market participants around the world, who are increasingly wary of having any connection to the United States given its regulatory uncertainty, should know that if they want to do business with a non-US regulated digital assets exchange, Bittrex Global is here for you.
“Bittrex Global will continue to lead the way in demonstrating that the future of crypto is secure, innovative, and regulated.”
Andrew Michaelson, partner at King & Spalding LLP, added: “We are proud to have advised Bittrex Global on this matter.
“What makes this result so unusual and gratifying is that our client, Bittrex Global, will put this matter behind it without paying a penny in settlement. We are thrilled with this result on behalf of our client.”
Mr Michaelson is a former senior counsel at the SEC.
The company said: “Bittrex Global was founded upon the three core principles of security, innovation, and regulation, and takes great pride in its global reputation as one of the longest-standing and most compliant exchanges in the world.
“All Bittrex Global customer funds continue to be safe and accessible, and the company remains committed to providing customers with the most secure exchange in the market.”
Last year, Bittrex US paid a $29 million settlement to the US Department of the Treasury after investigations by the Office of Foreign Assets Control and Financial Crimes Enforcement Network.
The US operation was shuttered at the end of April.