The U.S. Securities and Exchange Commission’s (SEC) enforcement staff told crypto exchange Bittrex in March that it would recommend the agency take legal action over alleged violations of investor-protection laws by the company, the Wall Street Journal reported Sunday.
The so-called Wells Notice likely preceded Bittrex’s announcement at the end of March that it will be winding down its operations in the U.S., in part thanks to challenging regulatory conditions. The company is uncertain if the SEC will take legal action since it is now exiting the market, according to the WSJ report.
If there is to be legal action, Bittrex would litigate unless the SEC “came with a reasonable settlement offer,” David Maria, the firm’s general counsel told the WSJ.
SEC enforcement action against a several prominent crypto enterprises have sent ripples through the industry. In February, exchange platform Kraken announced it was shuttering its crypto-staking program in the U.S. and paying $30 million to settle SEC charges.
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In October, Bittrex paid the U.S. Treasury Department’s sanctions and money laundering watchdogs $30 million over allegations that the company had a poor compliance program between 2014 and 2017.
