trending Market Intelligence /marketintelligence/en/news-insights/trending/beFe5HiCTY2A5pUgRCGTcA2 content esgSubNav
In This List

SecondMarket, Bitcoin Investment Trust agree to settle SEC charges

Blog

How Financial Institutions are Managing Exposure to U.S. Municipals

Blog

Insight Weekly: Global stock performance; hydrogen pilot projects; Powell's Fed future unsure

Blog

Top 100 Banks: Capital Ratios Show Resilience to the Pandemic

Blog

Banking Essentials Newsletter: October Edition


SecondMarket, Bitcoin Investment Trust agree to settle SEC charges

SecondMarket Inc. and Bitcoin Investment Trust, a Delawaretrust with bitcoins as its sole assets, agreed to settle SEC charges related toillegal redemptions of the trust's shares.

An SEC probe found that SecondMarket, as authorized participantof Bitcoin Investment Trust, purchased shares from the trust's shareholders andearned redemption fees during a continuous distribution.

SecondMarket, now known as , allegedlyviolated Rule 101 of Regulation M under the Securities Exchange Act thatprohibits distribution participants, and their affiliated purchasers, frompurchasing any security that is the subject of a distribution until after theapplicable restricted period.

Bitcoin Investment Trust allegedly violated a rule thatprohibits the same activity by issuers, selling security holders and theiraffiliated purchasers.

SecondMarket and Bitcoin Investment Trust did not admit ordeny the SEC's findings, but agreed to a cease-and-desist order against futureviolations.

SecondMarket also agreed to pay disgorgement of $51,650 inredemption fees, plus prejudgment interest of $2,106.