SEC Charges Crypto Trading Firm for Securities Registration Failures

The SEC charged a cryptocurrency trading firm for failing to register as a securities dealer.

In a Complaint filed in the United States District Court for the Northern District of Illinois, the SEC claimed that the firm bought and sold over $2 billion worth of crypto assets without registering with the SEC as a securities dealer. The Complaint further alleged that the firm operated a trading platform and provided price quotes to counterparties, capturing profits from the spreads between purchase and sale prices. The SEC indicated that the firm publicly promoted itself as a leading liquidity provider in the cryptocurrency market.

The SEC charged the firm with violations of SEA Section 15(a) ("Registration and regulation of brokers and dealers").

The SEC is seeking (i) a permanent injunction to restrain the firm from further violations, (ii) disgorgement of ill-gotten gains with prejudgment interest, and (iii) civil monetary penalties.