- Defunct crypto exchange Bittrex is asking a federal judge to overturn its 2023 settlement with the SEC.
- The company argues the SEC has reversed its legal stance on crypto, undermining the basis of the original lawsuit.
- Bittrex’s attorneys are now demanding the SEC return the company’s $24 million settlement payment.
In a bold legal maneuver, the defunct cryptocurrency exchange Bittrex has asked a federal judge this week to undo its 2023 settlement with the Securities and Exchange Commission. The Seattle-based firm contends the regulator’s radical policy shift on crypto has invalidated the foundation of their agreement.
Consequently, Bittrex wants the court to force the SEC to refund the $24 million penalty it paid. The exchange’s attorneys argue it is only fair the company benefits from the agency’s change of heart.
The original 2023 lawsuit, filed under the Biden administration, accused Bittrex of offering unregistered crypto securities. Bittrex settled and paid the fine, then shut down, citing an unviable U.S. regulatory climate.
However, under President Donald Trump, the SEC has emphasized most crypto tokens are not securities and has dropped nearly all similar cases. Bittrex’s legal team stated, “Two-and-a-half years after extracting a settlement… the SEC has (a) conceded that its legal theory was wrong.”
Meanwhile, the SEC moved in March to forfeit the $24 million to the Treasury Department for customer restitution. Bittrex‘s attorneys are now urging the judge to order the funds returned before disbursement. An SEC spokesperson declined to comment when reached by Decrypt.
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