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Bittrex Moves To Void SEC Settlement and Recover $24 Million

The exchange says the SEC’s policy shift on crypto tokens undercuts the case’s original premise.

Overview

  • Bittrex filed a motion in federal court to vacate its 2023 judgment and force a refund of the $24 million it paid, and the dispute now awaits a judge’s decision as the SEC has declined to comment.
  • The company argues the regulator has reversed course by saying most digital tokens are not securities and by dropping nearly all similar crypto cases.
  • Court records show the SEC sought in March to send the $24 million to the U.S. Treasury for distribution to former Bittrex customers, and the motion asks the judge to stop that transfer and return the money to the company.
  • Bittrex shut down operations after the 2023 settlement, and in 2022 it agreed to pay about $29 million to the Treasury over apparent sanctions violations tied to countries including Iran, Cuba, and Syria.
  • A ruling could signal whether shifts in enforcement policy are enough to unwind past crypto settlements, which might prompt other firms to challenge earlier deals.