ShapeShift Crypto Exchange Faces $275,000 Fine for Unregistered Securities

Wednesday, 6 March 2024, 06:41

ShapeShift, a 10-year-old crypto firm, settles with the SEC for $275,000 after being accused of acting as an unregistered securities dealer. The SEC intensified regulatory oversight following industry-wide collapses in 2022, leading to increased enforcement actions against crypto exchanges. ShapeShift's founder neither admitted nor denied the allegations, shedding light on the ongoing battle between government control and industry self-regulation.

How the ShapeShift Crypto Exchange Became the Latest Target of the SEC

The US Securities and Exchange Commission (SEC) targeted ShapeShift, a crypto exchange operating for a decade, for acting as an unregistered securities dealer.

Specifically, following the industry-wide collapses in 2022, the SEC intensified its regulatory oversight of the crypto industry.

ShapeShift was accused of offering 'at least 79 crypto assets' to its users, some identified as investment contracts. The SEC charged ShapeShift for directly engaging with customers, buying and selling crypto assets on its platform from 2014 until ceasing US operations in 2021.

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.

How the ShapeShift Crypto Exchange Became the Latest Target of the SEC

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