This is the reason Crypto Exchange Bittrex was sued in the US

This is the reason Crypto Exchange Bittrex was sued in the US

The US Securities and Exchange Commission is making waves in the crypto industry again, where it has most recently sued crypto exchange Bittrex.

For your information, Bittrex is one of the most popular crypto exchanges in the world.

Bittrex was founded in 2013 and is headquartered in the United States. This crypto exchange allows users to buy, sell and exchange various types of crypto assets, such as Bitcoin, Ethereum, Litecoin and so on.

Crypto Exchange Bittrex Digugat SEC AS

According to the Coindesk report, the US SEC has accused Bittrex of concurrently operating the activities of a national stock exchange, broker and clearing agent in violation of federal law.

The US SEC lawsuit was also filed against the former CEO of the crypto exchange, Bill Shihara.

The lawsuit states that Bittrex removed several problematic statements, such as price predictions and profit expectations.

“Bittrex should be registered as an exchange, clearing agent and broker, as it provides the services of all three types of entities,” said the US SEC.

In addition, at the beginning of April Bittrex had planned to exit the US market at the end of this month, before the lawsuit was received.

“As stated in our complaint, Bittrex's business model is based on three things, [namely] circumventing federal securities law registration requirements, advising issuers of crypto asset securities to do the same by changing their offering materials and incorporating some of the market brokerage functions under one stop for profit maximization,” said SEC US Director of Enforcement Gurbir Grewal.

Gurbir suspects that the crypto exchange has repeatedly chosen profits over investor protection.

On the other hand, Bittrex's general adviser, David Maria, said that last year the exchange had registered with the regulator, but was not deemed appropriate, and said that the regulations surrounding crypto assets in the US were unclear.

“This lack of regulatory clarity results in significant costs and uncertainty about what can and cannot be offered,” said Maria, quoted by Bitcoin News.

He also said that, if the US SEC proceeded to sue its client, it would fight it in court unless the Government made a reasonable settlement offer.

On the other hand, US SEC Chairman Gary Gensler said in an official press release that this latest case only underscores the reality, the crypto market suffers more from lack of compliance, not from regulatory ambiguity. [st]