Bittrex Global not ‘paying a penny’ as its US affiliate set to pay SEC

Exchange’s bankrupt US arm is responsible for the $24 million settlement amount while its foreign affiliate acts only as a “second-line guarantor,” Bittrex Global says

article-image

rafapress/Shutterstock modified by Blockworks

share

Crypto exchange Bittrex last week agreed to pay $24 million to the US Securities and Exchange Commission as part of a settlement related to unregistered securities allegations. 

However, the company’s global business said it is not shelling out any money. The $24 million is to be paid by Bittrex’s US arm, Bittrex Global said in a statement Wednesday. 

“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,” added Andrew Michaelson, partner at law firm King & Spalding. “We are thrilled with this result on behalf of our client.” 

Bittrex’s settlement with the SEC was filed on Aug. 10, with the company neither admitting nor denying various alleged securities violations.

The court confirmed the settlement late Tuesday, a company spokesperson told Blockworks in an email. While Bittrex Global will not make any payment, the representative added, it has agreed to be “jointly and severally liable” for the settlement amount as a “second-line guarantor.”

Bittrex’s US arm said in March it would shut down, in part because of the “regulatory uncertainty” in the country. CEO Richie Lai noted at the time that the exchange would look to continue growing Bittrex Global, a separate business regulated in Bermuda and Liechtenstein.

The SEC hit the company with charges the following month, alleging that six tokens available on Bittrex are securities. The regulator charged Bittrex Global, specifically, for “failing to register as a national securities exchange in connection with its operation of a single shared order book along with Bittrex.”

Bittrex US filed for bankruptcy in the weeks after the SEC filed its complaint.

Bittrex Global CEO Oliver Linch noted during an interview with Blockworks in May that Bittrex Global and the US business are “entirely separate companies” — a fact he said he doesn’t think the SEC understands.

“Bittrex Global has made enormous investments to ensure that we do not accept US customers,” Linch said in a Wednesday statement. “We service clients and provide services exclusively outside the US.” 

All Bittrex Global customer funds remain “safe and accessible,” the company said.


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Top Icon.png

Research

Osmosis thrived in H2 2023 on the back of increased DeFi activity deriving from recently launched Cosmos-related projects and better market conditions. With new value accrual mechanisms for the native token, Osmosis is well-positioned to continue its strong performance in 2024.

/

article-image

Do Kwon may miss the start of the March 25 trial in the SEC’s case against the former executive and Terraform Labs

article-image

Riot Platforms bought 31,500 more mining machines while CleanSpark has begun operating in Mississippi

article-image

Dencun was activated on all testnets, a blog post Tuesday said

article-image

Hut 8 also announced it broke ground on a Texas mining site

article-image

Uniswap aims to become a “complete platform for swapping” following its latest product releases

article-image

Continued demand for bitcoin ETFs coupled with greater demand for bitcoin from exchanges is contributing to price moves, analysts say