Paradigm, a leading crypto investment firm, has issued a statement defending its partner Bittrex, a popular crypto exchange, against the charges filed by the U.S. Securities and Exchange Commission (SEC) last week. The SEC accused Bittrex of violating federal securities laws by operating an unregistered securities exchange and facilitating illegal sales of digital asset securities.
In its statement, Paradigm said that the SEC’s allegations are “wrongful, unfounded, and contrary to the facts”. Paradigm argued that Bittrex is not an exchange, but a platform that enables peer-to-peer transactions of various digital assets, including cryptocurrencies, tokens, and stablecoins. Paradigm also claimed that Bittrex has complied with all applicable laws and regulations and has implemented robust anti-money laundering (AML) and know-your-customer (KYC) policies and procedures.
Paradigm further stated that the SEC’s action is “an attempt to stifle innovation and competition in the crypto industry”, and that it will “vigorously defend” Bittrex in court. Paradigm expressed its confidence that Bittrex will prevail in this case, and that it will continue to support Bittrex and its mission to provide a safe and secure platform for crypto users around the world.
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In response to the SEC’s allegations against Bittrex, one of its partner exchanges. The SEC accused Bittrex of operating an unregistered securities exchange and facilitating the sale of digital asset securities that are subject to federal securities laws.
In its statement, Paradigm said that it was “surprised and disappointed” by the SEC’s action, which it called “wrongful” and “unwarranted”. Paradigm claimed that Bittrex is a fully compliant and regulated exchange that has been operating in good faith and in accordance with the law. Paradigm also said that it has been cooperating with the SEC and providing information about its business model and operations.
Paradigm argued that the SEC’s allegations are based on a “misunderstanding” of the nature and function of crypto assets and the role of exchanges in facilitating their trade. Paradigm said that crypto assets are not securities, but rather innovative and decentralized forms of value transfer that empower users and foster financial inclusion. Paradigm also said that exchanges are not issuers or intermediaries of securities, but rather platforms that enable peer-to-peer transactions among consenting parties.
Paradigm expressed its confidence that it will be able to demonstrate the validity and legality of its activities and those of Bittrex in court. Paradigm said that it will continue to serve its customers and partners with the highest standards of professionalism and integrity. Paradigm also said that it will continue to advocate for a clear and fair regulatory framework for the crypto industry that respects innovation and protects investors.