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SEC Drops New Crypto Bombshell: OMG, DASH, and ALGO Named Among Unregistered Securities

Mon, 04/17/2023 - 15:48
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Alex Dovbnya
The US Securities and Exchange Commission (SEC) has dropped a bombshell on the crypto industry, naming OMG, DASH, and ALGO among unregistered securities in a court complaint filed against Bittrex
SEC Drops New Crypto Bombshell: OMG, DASH, and ALGO Named Among Unregistered Securities
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The US Securities and Exchange Commission (SEC) filed a court complaint against Bittrex, alleging the platform made numerous crypto assets available for trading without registration, including OmiseGO (OMG), Dash (DASH), Algorand (ALGO), TokenCard (TKN), NAGA Coin (NGC), and i-House Token (IHT).

The complaint highlights Bittrex's recognition of certain tokens, like Decentraland (MANA), possessing characteristics of securities but still approving them for trading. Bittrex has been accused of ignoring clear indications that some assets were marketed, offered, and sold as securities, such as in the case of Power Ledger (POWR).

Bittrex's trading platform does not restrict crypto asset purchases to any particular investor type, nor does it require investors to purchase quantities tied to any non-investment use of the asset. Furthermore, assets available for sale on the platform are transferable and immediately eligible for resale without apparent restrictions. According to the SEC, Bittrex has failed to register as a broker-dealer, national securities exchange, or clearing agency, and has earned at least $1.3 billion in revenues from transaction fees, placing investors at "significant risk."

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Since 2014, Bittrex has operated its trading platform, allowing US customers to buy, sell, and trade crypto assets, including securities. The platform has merged the functions of broker-dealers, exchanges, and clearing agencies, which are typically separated in traditional securities markets. Bittrex's defiance of regulatory structures and evasion of disclosure requirements have jeopardized investor protection and the stability of national securities markets.

The SEC alleges that Bittrex has been operating as an unregistered broker, soliciting potential investors, handling customer funds and assets, and charging fees for these services.

Additionally, Bittrex is accused of acting as an unregistered clearing agency by holding customer assets in Bittrex-controlled wallets and settling transactions through debiting and crediting relevant customer accounts.

The complaint also states that Bittrex and its foreign affiliate Bittrex Global have operated the platform as an unregistered exchange, providing a marketplace for buyers and sellers of crypto assets, and executing their orders.

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at