Bittrex receives Wells announcement from the SEC for violating investor protection laws

Bittrex receives Wells announcement from the SEC for violating investor protection laws

The Securities and Exchange Commission (SEC) has signaled the intention to submit another complaint against a heavyweight of the crypto industry-this time against the cryptocurrency exchange Bittrex.

The stock exchange, which had announced the closure of its US business last month, received a wells notic from the SEC, in which it had been violated that it had violated investor protection laws.

why Bittrex is leaving America

as reported according to Wall Street Journal, General Counsel von Bittrex said that the enforcement employees of the Sec intended to recommend the agency, to sue the company for violations of investor protection.

The company was one of these violations as an unregistered stock exchange, broker dealer and clearing point for securities. According to Maria, the SEC and Bittrex have been in talks since the end of 2022 to discuss a way to register. Unfortunately, the company could not find a way to do this without essentially stopping all its sales generating.

The agency has examined Bittrex since 2017 and has issued several lectures against the stock exchange to analyze how the company earns money, and to determine which assets should be listed. Last October, the company was fined by the finance of the finance of $ 53 million because it had introduced inappropriate money laundering rollers.

on March 31st finally please announced that it would close the US operation due to an "uneven competitive landscape", which was created by regulatory hurdles and lack of clarity, whereby continued operation would be “no longer feasible”. Maria said the company had already planned to hire the company before the Wells Notice received the SEC.

"The lack of regulatory clarity here leads to considerable costs and no certainty about what can and what cannot be offered," he said.

The crypto loan platform nexo was also forced gave up operations in the United States in the past year, after it was not successful in the middle of the" inconsistent changing positions “to find the country's regulatory authorities a way forward.

sec vs crypto exchanges

Bittrex was one of the largest cryptocurrency exchanges in the world in 2017 before it was later exceeded by Coinbase, Kraken and Binance.

coin base received a wells in the last month because of the list of unregistered securities on its platform and because of the failure, their staking as To register service product with the agency. Kraken was fined in February because of the provision of a similar service with a fine of $ 30 million.

Binance was later sued from the Commodities and futures trading commission for the facilitation of trade in the united in the united-including bitcoin and ether- Without proper registration.

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