SEC Asks Investment Advisors to Explain Crypto Risks to Clients

Previously, the US Securities and Exchange Commission (SEC) had accused Bittrex and its former CEO, William Shihara of operating an unlisted exchange.

In a complaint filed on Monday, the SEC accused the crypto exchange, once one of the largest in the US. It did so without filing with the SEC, which violates federal law.

Bittrex generated revenue of at least USD 1.3 billion or the equivalent of IDR 19.4 trillion (assuming an exchange rate of IDR 14,967 per US dollar) between 2017 and 2022 while offering brokerage, exchange and clearinghouse services.

Additionally, the SEC claims Bittrex is coordinating with crypto issuers to remove “problematic statements” that Shihara believes will prompt regulators such as the SEC to investigate the exchange.

In one instance, the SEC said Shihara instructed prospective issuers to remove comments referring to “price predictions” and “profit expectations.”

“Today’s action, once again, makes it clear the crypto market is suffering from a lack of regulatory compliance, not a lack of regulatory clarity,” said SEC Chairman Gary Gensler, quoted from Yahoo Finance, Saturday (22/4/2023).

Gensler added that Bittrex and the publishers it works with are aware of the rules that apply to them but go to great lengths to circumvent them.

Bittrex announced last month that it would exit the US market at the end of April. Over the weekend, the company told The Wall Street Journal it had recently been notified by the SEC of potential enforcement action.

The company’s general counsel, David Maria, said Bittrex would oppose the lawsuit unless the SEC offered a reasonable settlement offer. Last year, the US Treasury Department fined Bittrex USD 29 million or equivalent to IDR 430.6 billion for previously failing to comply with US money laundering and sanctions laws.

Disclaimer: Every investment decision is in the hands of the reader. Study and analyze before buying and selling Crypto. Liputan6.com is not responsible for profits and losses arising from investment decisions.