The now-shuttered crypto exchange Bittrex is asking the Securities and Exchange Commission to give back the $24 million it paid to settle charges in 2023. The firm argues that the SEC's current pro-crypto stance undermines the legal theory behind the original case. The request marks an unusual attempt to claw back a penalty after regulatory priorities shifted.
The 2023 settlement
Two years ago, Bittrex agreed to pay $24 million to resolve accusations that it operated an unregistered securities exchange. The SEC alleged that several digital assets listed on the platform met the definition of securities under U.S. law. Bittrex neither admitted nor denied the findings as part of the settlement.
Why Bittrex wants it back
In its filing, Bittrex points to the SEC's recent pivot toward clearer crypto rules and friendlier enforcement. The exchange claims that the regulator's new approach effectively invalidates the basis for the 2023 action. The company says it shouldn't have to pay a penalty tied to a legal framework the SEC has since abandoned.
What happens next
The SEC hasn't publicly responded to the request. Legal experts say the move is a long shot — settlements typically include language barring later challenges. But Bittrex is betting that the changed political and regulatory climate gives it leverage. The agency will likely need to decide whether returning the money sets a precedent for other firms that settled under the old guard.
