The US Securities and Exchange Commission (SEC) has reached an agreement with Bittrex and its former CEO, William Shihara.
In its announcement, the SEC announced that it has agreed to settle the legal problem with Bittrex and Bittrex Global for $14.4 million in liquidation, $4 million in pre-order interest and $5.6 million in civil penalties. However, the agreement must be approved by the court in order to enter into force.
SEC pressure continues
SEC official Gurbir Grewal used the following statements in his statement:
“Bittrex has operated with token issuances over the years to clear up their declarations of investment contracts. All of this was done with the intent to evade federal securities laws.
Today’s agreement makes it clear that you can’t avoid liability simply by changing labels and descriptions.”
In a statement to Cointelegraph, Shihara described the deal as a “good outcome”.
The SEC claimed last April that Bittrx operates as an unregistered securities exchange.
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