Bittrex Halts Operations After Bankruptcy Of US Unit
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Bittrex Global is halting operations, according to an announcement on November 20. The cryptocurrency exchange has said that operations on this platform will cease on December 4
Customers are urged to withdraw funds from the platform by December 4, with only specific withdrawals being processed after this date.
Bittrex Unexpectedly Halts Operations
The Bittrex cryptocurrency exchange has not shared a reason behind this shutdown. It has urged clients to convert their funds into cryptocurrency or euros to enable withdrawals. Besides halting operations, Bittrex will end the referral program and other promotional activities.
Shutting down this platform follows the closure of its US platform. This platform faced scrutiny from US regulators earlier this year.
In April, the US Securities and Exchange Commission (SEC) filed a lawsuit against Bittrex, accusing the exchange of operating an unregistered securities exchange. Bittrex is also facing a myriad of other charges.
The legal pressure by the SEC saw Bittrex filing for bankruptcy in May. The exchange also obtained court approval for a bankruptcy plan, allowing it to sell its US assets in October.
Bittrex’s Settlement With The SEC
The US division also announced a settlement with the SEC for $24 million in August. Despite the challenges, the CEO of Bittrex Global, Oliver Linch, expressed intent to contest against the allegations made by the SEC.
The lawsuit against Bittrex was filed in April, and it accused the exchange’s US and overseas entities of operating an illegal securities exchange. The regulator claimed Bittrex failed to register as a national securities exchange.
The cryptocurrency exchange said the bankruptcy filing would not affect Bittrex Global, in Liechtenstein and serves non-US customers. The filing said the assets and liabilities ranged between $500 million and $1 billion.
According to Bittrex, the assets owned by users based in the US were secure and safe. The exchange also plans to request a limited reopening of user accounts to distribute the remaining balances to holders.
Bittrex had a significant presence in the US, with 600,000 active users. The US bankruptcy filing says that customers in the US have at least $1 million in their bank accounts, with the largest depositor having $14.6 million worth of assets.
At the time of the bankruptcy filing, the 24-hour spot trading volumes for the exchange reached $19.7 million. The closure of this exchange comes as regulatory pressure on the cryptocurrency industry increases.
