Bittrex

History

2023

Closing the exchange

On November 20, 2023, the once largest US cryptocurrency exchange Bittrex announced a complete curtailment of its activities. All trading operations stop on December 4, 2023: after this date, users will only be able to withdraw their own funds.

The site, which went bankrupt in May 2023, does not disclose the reasons for its decision. The timeline for withdrawing assets from the platform is not limited, but Bittrex recommends that all users do so as soon as possible. It is noted that as part of the closing procedure, all promotions were terminated.

Once the largest crypto exchange in the United States Bittrex announced the closure

With great regret, we inform you that Bittrex Global has decided to curtail its activities. This decision was not easy, and we understand the inconvenience it can cause to our customers. All tools and tokens remain secure on the platform and are available for output. Bidding on Bittrex Global will be halted from December 4, 2023. Please make sure that you have completed all necessary transactions before this date, the official notice of the platform says.

Bittrex emphasizes that it takes data protection seriously. The Company assures customers that their personal information during the liquidation of the exchange will be processed in accordance with the privacy policy. It is also said that Bittrex customers cannot directly withdraw assets in US dollars, and therefore they must be converted into euros or cryptocurrency. In addition, users are advised not to place deposits on the platform in order to preserve funds.

The U.S. Securities and Exchange Commission (SEC) alleges that Bittrex and its former CEO operated an "unregistered national securities exchange, broker and clearing agency." In response, Bittrex said it intends to "vigorously" fight these allegations.^[1]

Bankruptcy

In May 2023, the large crypto exchange Bittrex filed for bankruptcy. This happened a few weeks after the American authorities accused the site of unregistered activities as an exchange, brokerage and clearing agency.

In mid-May 2023, Bittrex asked the court to allow customers to take their assets without cost or delay to litigation. But in June of that year, U.S. authorities appealed the exchange's plans, saying they were "improper."

Big crypto exchange Bittrex files for bankruptcy

In July 2023, the Florida Financial Regulatory Authority (OFR) accused Bittrex of violating state laws and filed a complaint against the company for fraud that took place before its bankruptcy. The court documents noted that the platform mixed clients' assets with working capital, and also ignored some of the obligations.

And in August 2023, it became known that Bittrex and a branch of the company outside the United States would pay $24 million in a lawsuit filed by the US Securities and Exchange Commission (SEC) due to the fact that the crypto site offered services to American customers without registration with the agency.

The SEC alleged that the cryptocurrency exchange and its former CEO operated an "unregistered national securities exchange, broker and clearing agency." He argued that the exchange violated securities laws when it offered and allowed U.S. investors to invest in crypto assets it considers securities (the SEC continues to argue that tokens like MATIC, SOL, ADA and XRP are securities).

Bittrex reported that it ceased operations in the United States at the end of April 2023, but this will not affect the work of Bittrex Global, which serves customers outside the United States, reports Reuters. The company notes that the crypto assets of American customers, who did not withdraw them until the end of April, are still on the site. Bittrex assures that they are "safe and secure."^[2]

Notes