Bittrex Hit With SEC Lawsuit After Deciding to Leave US

The SEC also alleged that six tokens available on Bittrex are securities

article-image

Sharaf Maksumov/Shuttertock modified by Blockworks

share

Weeks after announcing plans to permanently exit the US, Bittrex was hit with several charges from the SEC Monday. 

The SEC alleged that six tokens available on Bittrex are securities, including Algorand’s native ALGO and Dash token, the complaint noted. 

The SEC also claimed that the exchange operated as an “unregistered exchange, broker and clearing agency,” according to a statement from the agency. Bittrex’s former CEO William Shihara and international affiliate Bittrex Global GmbH are also facing charges. 

Bittrex, which revealed it would be winding down US operations earlier this month, had been tipped off in March that the SEC would proceed with a lawsuit, according to reports

In a statement earlier this month, Bittrex said it was closing down its US business because “it’s just not viable for us to continue to operate in the current U.S. regulatory and economic environment.”

SEC head Gary Gensler countered that there has been enough regulatory clarity around the crypto and exchange space for businesses to operate within the law. 

“Today’s action, yet again, makes plain that the crypto markets suffer from a lack of regulatory compliance, not a lack of regulatory clarity,” Gensler said in the statement. “Bittrex, as alleged, failed to register and comply with U.S. securities laws as an exchange, broker-dealer, and clearing agency. Cosmetic alterations did nothing to change the underlying economic realities of the offerings and Bittrex’s conduct.” 

US Bittrex customers have until April 24 to facilitate fiat withdrawals via wire transfer and until April 27 to withdraw via ACH. Trading closed on the platform last week on April 14. 

If users miss the above deadlines to pull funds off the platform, remaining assets “may be unavailable for an extended period,” Bittrex said.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

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.

recent research

Research Report Templates.png

Research

Content Delivery Networks (CDNs) represent low-hanging fruit in a massive market ripe for Web3-driven disruption. The global CDN market was valued at ~$28B in 2024, and is projected to surpass $140B by 2034, (18.75% CAGR) underscoring the immense demand for efficient content delivery.

article-image

As Satoshi-era wallets saw over $8 billion worth of BTC on the move, Congress is gearing up for “Crypto Week”

article-image

Bitcoin’s runaway success was partly driven by Slashdot

article-image

Blockworks Research data shows that VC spending is back on the rise after a slow May

article-image

After rejecting a bid from the AI cloud-computing startup last year, Core Scientific agreed to be acquired in a deal expected to close by Q4 2025

article-image

Sponsored

Plume’s collaboration with TRON will unlock cross-chain RWA yield for one of the world’s largest blockchain ecosystems

article-image

Who needs gold when you have taxes?