SEC Charges Bittrex: Algorand, Dash, & OMG Network Labeled Securities

• The US Securities and Exchange Commission (SEC) has charged Bittrex for failing to register as a national securities exchange, broker, and clearing agency.
• Cryptos including Dash, Algorand, OmiseGO, etc have been classified as securities by the SEC.
• Former CEO William Shihara was accused of instructing teams behind these cryptos to take down problematic statements that could draw the attention of the SEC.

SEC Charges Bittrex

The US Securities and Exchange Commission (SEC) has charged crypto exchange Bittrex and its former CEO William Shihara for failing to register as a national securities exchange, broker, and clearing agency.

Cryptos Classified As Securities

Cryptos including Dash (DASH), Algorand (ALGO), OmiseGO (OMG), TokenCard (TKN), NAGA Coin (NGC), and i-House Token (IHT) have been classified as securities by the SEC.

Problematic Statements Removed

Shihara was accused of instructing teams behind these cryptos to take down problematic statements made in the past that could draw the attention of the SEC. Before assets could be listed on the exchange, price predictions, expectations of profit, and other investment-related terms were deleted.

Other Allegations Against Bittrex

The SEC also alleges that Bittrex failed to provide restrictions on crypto asset purchases to any particular investor type or require investors to purchase quantities tied to any non-investment use of the asset. Additionally, it is alleged that Bittrex put investors at significant risk while raking in $1.3 billion in revenues from transaction fees without registering with SEC properly. The Agency is also suing Bittrex’s foreign affiliate -Bittrex Global -for not registering as a national securities exchange.

Bittrex Global’s Response

On April 17th ,Bittrex Global issued a response to the civil proceedings initiated by the SEC . They said they intend „to vigorously defend against these allegations“.