According to Decrypt, the closed cryptocurrency exchange Bittrex filed a motion this week with a federal judge requesting the dismissal of its $24 million settlement agreement with the SEC and demanding a full refund of the penalty. Bittrex’s attorneys argued that, at the time the SEC filed its lawsuit, it classified the relevant crypto tokens as unregistered securities; however, following the Trump administration’s takeover, the SEC has publicly acknowledged that this legal theory was erroneous and has since dismissed nearly all similar cases—except for Bittrex’s. Bittrex contends this treatment is unfair and demands equal consideration. Notably, the SEC has already initiated procedures as of March 2026 to transfer the $24 million to the Treasury Department for the purpose of compensating affected customers. Bittrex’s lawyers are urgently requesting the court to issue an order for the return of funds before the transfer occurs. The SEC has declined to comment on the matter.
Bittrex Seeks to Cancel $24M SEC Settlement and Demands Refund
TechFlowShare
Summary
Bittrex Seeks to Cancel $24M SEC Settlement and Demands Refund
As reported by TechFlow, the now-shuttered crypto exchange Bittrex filed a motion with a federal judge on May 7, 2026, seeking to rescind its 2023 $24 million settlement with the SEC and requesting a full refund of the penalty. Bittrex’s legal team argued that the SEC initially asserted certain tokens were unregistered securities, but after the Trump administration took office, the SEC publicly acknowledged that the legal theory was flawed and dropped nearly all similar cases, leaving Bittrex’s case unresolved. The company contends this constitutes unfair treatment and demands equal standing. Notably, the SEC plans to transfer the $24 million to the Treasury in March 2026 to compensate affected customers. Bittrex’s attorneys are urgently seeking a court order to halt the transfer and return the funds. The SEC declined to comment. The case could impact liquidity and crypto markets, particularly as regulators continue to balance enforcement with CFT (Countering the Financing of Terrorism) concerns.
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