Bittrex Shuts Down After US Unit Bankruptcy

Bittrex Global has made a recent declaration, announcing the cessation of its operations effective December 4. This decision marks the conclusion of trading activities on its platform, urging customers to withdraw their funds by the specified date, after which only certain withdrawals will be accommodated.

While the crypto exchange hasn't explicitly disclosed the reason for its closure, it has clarified that payouts in US dollars won't be available. Users are being guided to convert their funds into cryptocurrencies or euros to facilitate withdrawals. Moreover, the company has ceased its referral program and all promotional efforts.

This move mirrors the fate of its U.S. counterpart, which encountered regulatory hurdles earlier in the year. In April, the SEC targeted Bittrex US, alleging unregistered securities exchange operations among other charges. Consequently, Bittrex US filed for bankruptcy in May, later receiving court approval to sell its U.S. assets in October.

Despite facing challenges, Bittrex Global's CEO, Oliver Linch, had previously expressed intentions to vigorously contest the SEC's allegations, paralleling the legal battle of its U.S. affiliate.

The SEC's lawsuit, initially filed in April, accused both the U.S. and overseas entities of Bittrex of running an illegal securities exchange, broker-dealer, and clearinghouse. Notably, the overseas entity was accused of failing to register as a national securities exchange.

Part of the settlement involved Bittrex and Shihara consenting to an order prohibiting them from violating U.S. securities laws.

The Seattle-based exchange assured that the bankruptcy filing wouldn't affect its global arm, Bittrex Global, catering to non-U.S. clients from Liechtenstein. The filing revealed assets and liabilities ranging between $500 million to $1 billion.

Bittrex ensured the safety of assets belonging to its U.S.-based users and announced plans for a limited reopening of accounts to distribute remaining balances.

The exchange boasted approximately 600,000 active U.S. users and an additional 600,000 unfunded customer accounts. The bankruptcy filing unveiled 16 U.S.-based customers holding at least $1 million in their accounts, with the largest depositor holding assets worth $14.6 million.

At the time of the announcement, Bittrex Global reported a 24-hour spot trading volume of around $19.7 million. The platform's closure adds to the ongoing narrative of regulatory pressures and market challenges experienced by crypto exchanges worldwide.