SEC Settles Charges with Crypto Asset Trading Platform Bittrex and Former CEO

Charges Stem from Unregistered Digital Asset Securities Offerings

April 17, 2023 - Washington, D.C. -

The Securities and Exchange Commission (SEC) today announced settled charges against Bittrex, Inc. (Bittrex) and its former CEO, Bill Shihara, for failing to register their digital asset trading platform with the SEC and for failing to implement and maintain adequate anti-money laundering (AML) and know-your-customer (KYC) policies and procedures.

The SEC's order finds that from 2014 to 2018, Bittrex operated an online platform where users could trade digital assets, including tokens that met the definition of securities under the federal securities laws. The order further finds that Bittrex failed to register its platform with the SEC, as required by the Securities Exchange Act of 1934, and that it failed to implement and maintain a sufficient AML/KYC compliance program, as required by the Bank Secrecy Act and its implementing regulations.

Without admitting or denying the SEC's findings, Bittrex and Shihara agreed to settle the charges by consenting to the entry of a final judgment that imposes injunctive relief, disgorgement, prejudgment interest, and civil penalties against them. The final judgment requires Bittrex to pay $2.5 million in disgorgement, $1 million in prejudgment interest, and a $100,000 civil penalty. The final judgment also requires Shihara to pay a $50,000 civil penalty.

The SEC's investigation was conducted by the Enforcement Division's Cyber Unit. The case was supervised by Robert A. Cohen, Chief of the Cyber Unit, Michael J. Rowan, Senior Counsel, and Kristina Littman, Deputy Chief of the Cyber Unit.