Securities Litigation Attorney Comments on Bittrex Settlement: Don’t Expect Same Treatment for Binance

August 12, 2023 – Media Mention
Crowdfund Insider

Partner and co-chair of Herrick's Securities Litigation and Enforcement GroupArthur G. Jakoby, was quoted in Crowdfund Insider discussing the $24 million settlement the Securities and Exchange Commission ("SEC") reached in its enforcement of Bittrex and a foreign affiliate, and what this settlement means for the SEC's actions against Coinbase and Binance.

The article highlighted that the SEC alleged that Bittrex "operated as an unregistered broker, change and clearing entity in handling digital assets."

Arthur noted, “The Bittrex settlement does not portend similar SEC settlements for crypto exchange platforms such as Coinbase and Binance. Since Bittrex Global had already closed down its US operations and put it into bankruptcy, it will not be affected by this settlement. Thus, there was no need to fight the SEC to establish that its now-closed operations were securities compliant. Beyond the claims of operating an unregistered broker, exchange, and clearing agency, Bittrex and [William] Shihara [former CEO of Bittrex] had also been charged with scrubbing its website of any statements that would suggest violations of U.S. securities laws. This settlement was undoubtedly influenced by these additional actions in order to escape regulatory scrutiny. The settlement, which does not require an admission of any facts by either Bittrex or Shihara, avoids any further SEC investigation of these allegations.”

Read the full article in Crowdfund Insider here