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SEC Deems DASH, ALGO, and OMG ‘Unregistered Securities’ in Bittrex Lawsuit

According to the recent complaint by the U.S. Securities and Exchange Commission (SEC) against Bittrex, the securities regulator insists that a few crypto asset tokens were offered and sold as investment contracts and are securities. The news follows the SEC’s designation of several crypto assets as securities, including the case against Terraform Labs, which insists that LUNA and UST were sold as unregistered securities. Additionally, a lawsuit initiated by New York attorney general Letitia James against Kucoin insists that ethereum is also an unregistered security.

Lawsuits Against Crypto Exchanges Bring Lack of Clarity Over Security vs. Commodity Status to the Forefront

This year, U.S. regulators are designating a number of crypto assets as unregistered securities, and the allegations are buried in lawsuits against several crypto exchanges. Bittrex is the latest crypto exchange to be sued this year, following lawsuits against trading platforms such as Binance US, Kucoin, and Coinex, after the SEC accused Bittrex of operating “an unregistered national securities exchange, broker, and clearing agency.” In the lawsuit against Bittrex, the SEC insists that DASH, ALGO, TKN, NGC, and OMG are unregistered securities.

As an example, on page 35, the SEC emphasized that “investors in OMG had a reasonable expectation of profits based on the efforts of others” while discussing the Omisego Project. The securities regulator claims that “materials available at the time of the [initial coin offering (ICO)] indicated that the development of the platform by the OMG Network team could lead to profits for OMG token holders.” On page 37, the SEC discusses DASH, and the regulator emphasizes that “purchasers of DASH invested in a common enterprise.”

Gary Gensler has been promoting Algorand for years

Now that the SEC ruled Algorand a security, is he going to get hit with the same $1.26 million dollar fine he gave Kim Kardashian?pic.twitter.com/ucuOOVxqPS

— LilMoonLambo (@LilMoonLambo) April 17, 2023

The SEC explains how the Dash project has a treasury, Dash Control Group, and describes the Masternodes process. Another crypto asset designated as an unregistered security is ALGO, as the regulator claims it was also sold as an investment contract. This particular crypto asset is being discussed on social media because SEC chair Gary Gensler previously called Algorand a “great technology” and “something you can create Uber on top of,” and he talked about the Italian computer scientist Silvio Micali, Algorand’s founder. However, despite the SEC chair’s past commentary, the SEC complaint insists that:

Investors in ALGO had a reasonable expectation of profits based on the efforts of others.

The regulator’s lawsuit, filed in the U.S. District Court for the Western District of Washington, provides details on when the crypto assets were made available on Bittrex’s platform. The SEC explains that DASH was made available on Bittrex in 2014 but was temporarily removed on December 29, 2020, only to be re-listed on September 1, 2021. “From the time of its offering and continuing through the relevant period, DASH was offered and sold as an investment contract and, therefore, a security,” the SEC complaint adds.

Regulatory Bodies at Odds Over Classification of Ethereum and Other Cryptocurrencies

The Securities and Exchange Commission has not provided an official list of crypto assets that have been deemed securities. Mentions of such designations continue to arise in court cases, such as the July 2022 insider trading case involving a Coinbase employee. The lawsuit referenced crypto assets such as dfx finance (DFX), LCX (LCX), powerledger (POWR), and six other digital currencies listed on the crypto trading platform. Luna (LUNA) and terrausd (UST) were identified as unregistered securities in the SEC case against Do Kwon. Additionally, the lawsuits against Kucoin and Coinex initiated by New York attorney general Letitia James make specific designation claims.

In the Coinex lawsuit, James and the Office of the Attorney General (OAG) assert that the trading platform failed to register as a securities and commodities broker-dealer and sold “securities and commodities.” The securities and commodities mentioned in the OAG case include AMP, LUNA, LBC, and RLY. In the case against Kucoin, James and the OAG stated that the second-largest crypto asset, ethereum (ETH), is an unregistered security.

In the lawsuit against Binance launched by the U.S. Commodity Futures Trading Commission (CFTC), the commodities regulator declares that bitcoin, ethereum, binance usd, tether, and litecoin are commodities. The discrepancies between the OAG and the CFTC lawsuits highlight the lack of regulatory clarity in the system where two regulating bodies still haven’t decided on what is a security and what a commodity is in terms of the thousands of crypto assets that exist today.

What do you think the future holds for the regulation of cryptocurrencies? Do you believe more clarity and consistency will emerge, or will the regulatory landscape remain fragmented and uncertain? Share your thoughts in the comments section below.

Source

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  • 14.10.25 08:46 robertalfred175

    CRYPTO SCAM RECOVERY SUCCESSFUL – A TESTIMONIAL OF LOST PASSWORD TO YOUR DIGITAL WALLET BACK. My name is Robert Alfred, Am from Australia. I’m sharing my experience in the hope that it helps others who have been victims of crypto scams. A few months ago, I fell victim to a fraudulent crypto investment scheme linked to a broker company. I had invested heavily during a time when Bitcoin prices were rising, thinking it was a good opportunity. Unfortunately, I was scammed out of $120,000 AUD and the broker denied me access to my digital wallet and assets. It was a devastating experience that caused many sleepless nights. Crypto scams are increasingly common and often involve fake trading platforms, phishing attacks, and misleading investment opportunities. In my desperation, a friend from the crypto community recommended Capital Crypto Recovery Service, known for helping victims recover lost or stolen funds. After doing some research and reading multiple positive reviews, I reached out to Capital Crypto Recovery. I provided all the necessary information—wallet addresses, transaction history, and communication logs. Their expert team responded immediately and began investigating. Using advanced blockchain tracking techniques, they were able to trace the stolen Dogecoin, identify the scammer’s wallet, and coordinate with relevant authorities to freeze the funds before they could be moved. Incredibly, within 24 hours, Capital Crypto Recovery successfully recovered the majority of my stolen crypto assets. I was beyond relieved and truly grateful. Their professionalism, transparency, and constant communication throughout the process gave me hope during a very difficult time. If you’ve been a victim of a crypto scam, I highly recommend them with full confidence contacting: 📧 Email: [email protected] 📱 Telegram: @Capitalcryptorecover Contact: [email protected] 📞 Call/Text: +1 (336) 390-6684 🌐 Website: https://recovercapital.wixsite.com/capital-crypto-rec-1

  • 15.10.25 18:07 crypto

    Cryptocurrency's digital realm presents many opportunities, but it also conceals complex frauds. It is quite painful to lose your cryptocurrency to scam. You can feel harassed and lost as a result. If you have been the victim of a cryptocurrency scam, this guide explains what to do ASAP. Following these procedures will help you avoid further issues or get your money back. Communication with Marie ([email protected] and WhatsApp: +1 7127594675) can make all the difference.

  • 15.10.25 21:52 harristhomas7376

    "In the crypto world, this is great news I want to share. Last year, I fell victim to a scam disguised as a safe investment option. I have invested in crypto trading platforms for about 10yrs thinking I was ensuring myself a retirement income, only to find that all my assets were either frozen, I believed my assets were secure — until I discovered that my BTC funds had been frozen and withdrawals were impossible. It was a devastating moment when I realized I had been scammed, and I thought my Bitcoin was gone forever, Everything changed when a close friend recommended the Capital Crypto Recover Service. Their professionalism, expertise, and dedication enabled me to recover my lost Bitcoin funds back — more than €560.000 DEM to my BTC wallet. What once felt impossible became a reality thanks to their support. If you have lost Bitcoin through scams, hacking, failed withdrawals, or similar challenges, don’t lose hope. I strongly recommend Capital Crypto Recover Service to anyone seeking a reliable and effective solution for recovering any wallet assets. They have a proven track record of successful reputation in recovering lost password assets for their clients and can help you navigate the process of recovering your funds. Don’t let scammers get away with your hard-earned money – contact Email: [email protected] Phone CALL/Text Number: +1 (336) 390-6684 Contact: [email protected] Website: https://recovercapital.wixsite.com/capital-crypto-rec-1

  • 15.10.25 21:52 harristhomas7376

    "In the crypto world, this is great news I want to share. Last year, I fell victim to a scam disguised as a safe investment option. I have invested in crypto trading platforms for about 10yrs thinking I was ensuring myself a retirement income, only to find that all my assets were either frozen, I believed my assets were secure — until I discovered that my BTC funds had been frozen and withdrawals were impossible. It was a devastating moment when I realized I had been scammed, and I thought my Bitcoin was gone forever, Everything changed when a close friend recommended the Capital Crypto Recover Service. Their professionalism, expertise, and dedication enabled me to recover my lost Bitcoin funds back — more than €560.000 DEM to my BTC wallet. What once felt impossible became a reality thanks to their support. If you have lost Bitcoin through scams, hacking, failed withdrawals, or similar challenges, don’t lose hope. I strongly recommend Capital Crypto Recover Service to anyone seeking a reliable and effective solution for recovering any wallet assets. They have a proven track record of successful reputation in recovering lost password assets for their clients and can help you navigate the process of recovering your funds. Don’t let scammers get away with your hard-earned money – contact Email: [email protected] Phone CALL/Text Number: +1 (336) 390-6684 Contact: [email protected] Website: https://recovercapital.wixsite.com/capital-crypto-rec-1

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