Bittrex Seeks to Vacate $24M SEC Settlement, Citing Regulator's Policy Reversal on Crypto

According to Bittrex's attorneys, the bankrupt cryptocurrency exchange filed a motion this week with a federal court in Seattle to vacate its 2023 settlement with the U.S. Securities and Exchange Commission and order the agency to return the $24 million in penalties paid. The exchange argues that the SEC's reversal on whether most crypto tokens qualify as securities undermines the legal foundation of the original case.

Since President Donald Trump returned to office, the SEC has reworked its crypto enforcement strategy and dropped or paused most lawsuits filed against major crypto firms during the previous administration. Bittrex's legal team contends that fairness requires the company to benefit from the same policy shift that has favored competitors. A court decision is expected in the coming months.