Bittrex received Wells’ notice from the Securities and Exchange Commission (SEC) as it prepared to wind down operations in the United States
Bittrex, a crypto exchange preparing to shut down operations in the US, is in the crosshairs of the Securities and Exchange Commission. The regulator has stepped up its mission to clamp down on the crypto business since the beginning of this year.
David Maria, General Counsel at Bittrex, told Wall Street Journal They received a notice from Wells purporting to engage in business activities as an exchange, broker-dealer, and clearinghouse without registrations.
A Wells Notice is a formal notice from the Securities and Exchange Commission (SEC) informing them that they are considering legal action against an individual or entity.
Notice to Wells may not necessarily lead to legal action
However, not all cases involving Wells’ notice from the SEC result in court action. Sometimes, the regulator may drop the investigation or reach a settlement agreement with the interested party.
Maria said they are not sure if the regulators will take them to court because the company has already shut down operations. But, if the regulatory agency takes enforcement action, Bittrex will sue unless the SEC makes a “reasonable settlement offer.”
After a long history of battling with regulators, the nine-year-old exchange has finally decided to shut down its platform, citing an “unclear regulatory environment.”
Former SEC Attorney John Reed Stark, Believes that “Coinbase is next for the SEC lawsuit.” Coinbase already received Wells’ notice last month.
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