Bitcoin

Operator of Bitcoin Stock Exchange Penalized By the SEC

Operator of Bitcoin Stock Exchange Penalized By the SEC

U.S. Securities and Exchange Commission (SEC) headquarters in Washington.

Image credit: Reuters | Jonathan Ernst

U.S. securities regulators on Monday ordered the operator of a stock exchange, which allowed clients to use Bitcoin to trade in certain securities, to pay $68,000 to resolve claims that he did not register the exchanges.

Ethan Burnside and his company BTC Trading Corp operated two online exchanges through which account holders could buy, sell and trade securities of companies in the virtual currency business between 2012 and 2013, the Securities and Exchange Commission said.

Burnside and BTC neither admitted nor denied the charges.

Burnside agreed to be barred from the securities industry but will be able to reapply after two years. His lawyer could not be immediately reached for comment.

The exchanges had solicited more than 10,000 users who had opened online accounts and executed more than 425,000 traders, the SEC said.

The settlement requires Burnside to pay $58,387 in profits and interest, and a penalty of $10,000.

(Reporting by Aruna Viswanatha; Editing by Bernadette Baum)

Latest News and Headlines from Reuters