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On November 20, Liechtenstein-based cryptocurrency exchange Bittrex Global abruptly announced that it would cease all operations worldwide effective Monday, December 4, 2023.
According to the statement posted on its website, Bittrex Global will stop all trading activities on its platform and will only allow withdrawals of funds after December 4, urging users to withdraw their funds in full before that date.
Bittrex Global Suspends Operations Amid Regulatory Scrutiny
The closure of Bittrex Global comes nine months after its US subsidiary filed for Chapter 11 bankruptcy in Delaware, following the advertisement to cease operations in the US after being accused by the Securities and Exchange Commission (SEC) of operating without registration.
In April, the SEC charged Bittrex and its co-founder and former CEO, William Shihara, with illegally running an unregistered stock exchange, which allegedly generated around $1.3 billion. This resulted in a fine that Bittrex agreed to pay in August, worth $24 million for the alleged violations.
Bittrex Global is among the top 100 global exchanges, albeit with much lower trading volume than industry giants like Coinbase or Binance, recording just $6 million in daily volume after having been one of the largest exchanges in the years. US before its regulatory problems in 2021.
Bittrex ensures that user funds are safe
Despite the regulatory challenges faced by Bittrex, the platform has strongly emphasized that user funds are safe on the platform and can be withdrawn without any problems.
"All funds and tokens remain secure on the Bittrex Global platform and are available for withdrawal, in accordance with applicable law and our Terms of Service, at any time using the withdrawal functions on the platform," the statement quotes .
Additionally, the exchange regretted the inconvenience caused by its decision to users without disclosing the specific reasons behind the closure, although all signs indicate that its problems with the SEC are much greater than anticipated, especially considering the regulator's recent actions. against two important cryptocurrencies. exchanges, Binance and Kraken.
Yesterday, the SEC demanded $4 billion from Binance to drop the lawsuit against it. On the same day, the SEC filed charges against Kraken, nine months after what appeared to be the resolution of their disputes, following Kraken's acceptance of a $30 million bonus payment.
Therefore, the current situation involving Bittrex and other exchanges raises questions about the stability in the relationship between cryptocurrency exchanges and regulators. It also creates uncertainty about whether supposed previous resolutions between these actors can be trusted.
