Crypto exchange ShapeShift settles with SEC for $275k
ShapeShift has agreed to pay a $275,000 fine to settle allegations brought by the SEC, which said the exchange failed to register as a dealer.
In a settlement revealed on Mar. 5, the U.S. Securities and Exchange Commission (SEC) announced an agreement with the ShapeShift crypto exchange, following allegations of failure to register as a dealer. The SEC stated that ShapeShift had not registered with the commission while offering assets classified as securities from 2017 to 2019.
“The crypto assets offered by ShapeShift included those that were offered and sold as investment contracts and, therefore, securities.”
The U.S. Securities and Exchange Commission
As part of the agreement, ShapeShift consented to a cease-and-desist order and agreed to pay a $275,000 fine to settle the SEC’s allegations. Amid the news, ShapeShift’s token FOX plunged by over 9% down to $0.078, according to CoinMarketCap.
The latest development follows ShapeShift’s announcement in January 2021, wherein it unveiled plans to revamp its business model. This involved discontinuing direct crypto asset exchanges through its website and ceasing to act as the counterparty to customer transactions. By July of the same year, ShapeShift proceeded to wind down its corporate structure.
ShapeShift justified its decision by emphasizing its commitment to immutable, non-custodial decentralized finance, a principle it has advocated since its inception. Eventually, the exchange distributed over 60% of its 1 billion FOX tokens to more than one million clients.
