Bittrex, a popular cryptocurrency exchange, is facing charges from the U.S. Securities and Exchange Commission (SEC) for allegedly offering unregistered securities. The charges come just weeks after the exchange announced its plans to permanently exit the U.S. market.
According to the reports, the SEC identified six tokens available on Bittrex that it considers securities. Among these are the native tokens of blockchain platform Algorand, ALGO, and the popular privacy-focused cryptocurrency Dash.
In addition to the alleged offering of unregistered securities, the SEC has accused Bittrex of operating as an unregistered exchange, broker, and clearing agency. The charges also extend to the former CEO of Bittrex, William Shihara, and the company’s international affiliate, Bittrex Global GmbH.
Based on reports, Bittrex had prior knowledge that the SEC would sue them in March, which ultimately led to the exchange’s decision to wind down its U.S. operations. Bittrex cited the challenging regulatory and economic environment as the reason behind the closure.
However, SEC head Gary Gensler claimed sufficient regulatory clarity exists for crypto businesses to operate lawfully. The SEC accused Bittrex of failing to register and comply with U.S. securities laws, and cosmetic changes made by the exchange did not alter the underlying economic realities of its offerings.
On the other hand, Bittrex customers in the U.S. have until April 24 to withdraw funds via wire transfer and until April 27 to withdraw via ACH. Failure to meet these deadlines may result in the remaining assets being unavailable for an extended period, as per Bittrex’s statement.
