Summary
TLDR: ShapeShift, a cryptocurrency platform that ceased operations in 2021, has agreed to a cease-and-desist order and a $275,000 fine from the SEC for allowing users to trade digital tokens without registering as a broker or exchange. The SEC alleges ShapeShift facilitated the sale of securities without proper registration. Despite being defunct, ShapeShift was once a prominent player in the crypto space, known for its no-KYC policy. The platform faced regulatory pressure, delisted privacy coins, and launched its own token before dissolving in 2021. ShapeShift resurfaced in the national policy debate when Sen. Elizabeth Warren criticized it in a bill promoting tighter regulations on the digital asset space. ShapeShift refuted Warren’s claims, stating they care about user safety, innovation, and financial freedom. Today, ShapeShift operates as a browser-based crypto wallet provider.
Key Points
1. Cryptocurrency platform ShapeShift has agreed to a cease-and-desist order and a $275,000 fine to settle allegations from the SEC for allowing users to trade digital tokens without registering as a broker or exchange.
2. The SEC’s case against ShapeShift focuses on its operations between July 2017 and November 2019, during which the exchange allegedly facilitated the purchase and sale of digital assets that were considered securities without proper registration.
3. ShapeShift, founded in 2014 by CEO Erik Voorhees, was once a prominent player in the crypto space, allowing customers to buy and sell digital assets without creating an account or providing personal information.