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.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Brooklyn, NY

SUN - MON, JUN. 22 - 23, 2025

Blockworks and Cracked Labs are teaming up for the third installment of the Permissionless Hackathon, happening June 22–23, 2025 in Brooklyn, NY. This is a 36-hour IRL builder sprint where developers, designers, and creatives ship real projects solving real problems across […]

recent research

Featured.png

Research

Helium stands at a pivotal moment in its evolution as a decentralized wireless network, balancing rapid growth, economic restructuring, and global expansion. With accelerated growth in domestic DAUs and Hotspots supporting its network, Helium is leveraging strategic partnerships and innovative proposals to scale internationally. The recent implementation of HIP 138, “Return to HNT,” has unified its token economy under HNT, simplifying participation and strengthening liquidity, while HIP 139’s phase-out of CBRS refocuses efforts on scalable Wi-Fi offload. Meanwhile, governance shifts under HIP 141 raise questions about centralization as Nova Labs consolidates control over the roadmap.

article-image

The DeFi Education Fund has ideas on how the crypto-friendly SEC can bring Commissioner Peirce’s vision to life

article-image

“Be prepared to do more with less,” Framework Ventures’ Michael Anderson said

article-image

Q1 may have been “frustrating,” but things are looking brighter for Q2

article-image

Tokens worth 20% of the current supply of the TRUMP memecoin launched by the president are set to be unlocked tomorrow

article-image

A crypto-industry lawsuit is “moot” now that Joint Resolution 25 has been signed into law

article-image

Fed Chair Powell assured markets that the labor market is in “good place,” dependent on price stability