ShapeShift Resolves SEC Charges Over Crypto Securities

Federal Regulator Settles with ShapeShift

The US Securities and Exchange Commission (SEC) has settled charges against ShapeShift, a crypto exchange previously based in Denver, Colorado. The SEC accused ShapeShift of operating as an unregistered dealer for cryptocurrency securities before 2021.

The US Securities and Exchange Commission issued a cease-and-desist order against the company.

In 2021, ShapeShift dissolved its US crypto exchange operations. The SEC filed a cease-and-desist order against the company. The regulator alleged that ShapeShift offered and sold cryptocurrencies as investment contracts without proper registration.

Settlement Offer Accepted

As part of the settlement, ShapeShift agreed to pay a fine of $275,000. The company also committed to abide by the Securities Exchange Act going forward. This settlement resolves the SEC's allegations against ShapeShift.

ShapeShift Operated as an Unregistered Dealer in the US from 2014 to 2021.

Between 2014 and 2021, ShapeShift operated as an unregistered dealer in the US. The company facilitated the buying and selling of crypto assets for its own accounts. ShapeShift offered a variety of crypto assets to its customers, including those sold as investment contracts.

SEC Enforcement Actions Against Cryptocurrency Exchanges

The SEC's action against ShapeShift mirrors similar accusations made against other US-based crypto exchanges, such as Coinbase, Kraken, and Binance.US.

ShapeShift Closes US Operations in Compliance with SEC Enforcement Actions

ShapeShift closed its US exchange operations in 2021. The company's decision to cease its US activities aligns with the SEC's enforcement actions.

It's important to note that the findings in the cease-and-desist order are specific to ShapeShift and do not have binding effects on other entities or individuals.