Bittrex, a cryptocurrency exchange based in the United States, may face legal action from the US Securities and Exchange Commission (SEC) for alleged violations related to investor protection, according to a report from The Wall Street Journal. Bittrex’s general counsel, David Maria, said that the SEC’s enforcement division informed the exchange of potential action in March, but by then, Bittrex had already begun winding down its US operations. In a notice of potential enforcement action, known as a Wells notice, the SEC accused Bittrex of violating laws by operating as an exchange, broker-dealer, and clearinghouse without registering with the regulator.
According to Maria, Bittrex had discussed registering its operations with the SEC in late 2022 but found that there was no way to comply with the agency’s rules without essentially ceasing all revenue-producing activities in the country. Bittrex is not sure if the SEC will file a lawsuit against it now that it’s terminating operations in the US.
