Bittrex Responds to SEC Lawsuit with Court Challenge
We recently reported that the U.S. Securities and Exchanges Commission (SEC) filed a lawsuit against crypto exchange Bittrex for facilitating unregistered security-based swaps. In response, Bittrex has filed a court sstatement challenging the claims made by the SEC.
The legal documents filed by Bittrex directly refute the SEC’s allegations, denying any direct knowledge of the trades in question regarding the sale of unregistered security-based swaps. The legal statement also suggests that it is implausible for a defendant like Bittrex to be aware of “every customer trading activity” and categorize them according to their respective registered or unregistered status.
The filing also stressed that Bittrex is a well-regulated exchange, boasting “an unparalleled degree of regulatory compliance” supported by its compliance with guidelines set by domestic and international financial authorities.
Bittrex also noted how it has made efforts to prevent users from using its platform for any potentially illegal activities. The company even went so far as to reference anti-money laundering regulations and customer know your customer procedures which have been implemented within its platform.
In its statement, Bittrex requested that all charges should be dismissed due to its “reasonable cause” cited in the filing. It asked for confirmation that its practices solely adhere to applicable laws and regulations established by financial authorities.