Bittrex Seeks Refund of $24 Million Settlement with SEC Amid Crypto Regulatory Shift

Crypto exchange Bittrex is seeking to revisit its $24 million settlement agreement with the Securities and Exchange Commission (SEC). The company claims it would be unfair for them to have paid penalties based on a now-debunked theory that certain crypto tokens are securities.

The SEC had sued Bittrex under the Biden administration, alleging the exchange offered the sale of unregistered securities. However, since President Donald Trump's return to power, the SEC has shifted its stance on cryptocurrency, stating it does not view most tokens as securities.

Bittrex's attorneys are arguing that given this change in approach, it would be only fair for them to receive some benefits from the SEC's new stance. They have filed a motion with the court to vacate the prior judgment and compel the SEC to refund the $24 million penalty paid by Bittrex.

The company also points out that the Trump-led SEC has moved to forfeit the funds to the Treasury Department, which would distribute them to former customers who suffered financial harm. Bittrex is urging the court to order the funds returned before they are disbursed.