Due to a legal settlement with the SEC and other regulatory challenges, Bittrex Global, a leading regulated cryptocurrency exchange, has announced that it will wind down all its trading operations globally on Dec. 4, 2023
The decision comes as the latest development in a turbulent journey for the exchange, which filed for bankruptcy protection earlier this year.
Bittrex Global to Shut Down Operations by December
Bittrex Global, a prominent cryptocurrency exchange, announced on November 20 its plans to cease operations in the coming weeks.
The statement read, “Effective Monday, 4 December 2023, all trading activity on Bittrex Global will be disabled. After that date, customers will only be able to withdraw assets as part of the winding down process.”
It is with great regret that we inform you that Bittrex Global has decided to wind down its operations.
Effective Monday 4 December 2023, all trading activity on Bittrex Global will be disabled. After that date, customers will only be able to withdraw assets as part of the…
— Bittrex Global (@BittrexGlobal) November 20, 2023
This development comes nine months after its U.S. counterpart, Bittrex, announced its plans to gradually terminate its operations in the country from April 30 due to persistent uncertainty in regulatory affairs.
In its announcement, the company also notified users of the immediate termination of its referral program and promotions. The statement also emphasized that all funds and tokens remain secure on the platform and are available for withdrawal following applicable laws and the terms of service, further discouraging any new deposits due to the risk of potential loss.
Customers with USD balances must convert their holdings into EUR or cryptocurrency before the suspension to facilitate withdrawals. Although no specific deadline has been established for withdrawals after December 4, customers have been advised to withdraw their funds as soon as possible.
Bittrex Global’s Regulatory Challenges
Once considered one of the largest exchanges in the United States and accounting for almost 23% of the total market share in 2018, Bittrex Global has faced challenges due to increased competition amongst crypto exchanges and regulatory scrutiny.
Earlier this year, in May, Bittrex’s U.S. division filed for Chapter 11 bankruptcy after facing the Securities and Exchange Commission (SEC) charges for violating securities laws. As a result, the cryptocurrency exchange was fined $24 million, which Bittrex promptly paid to settle the allegations.
Bittrex was accused of allowing U.S. investors to invest in securities that were not officially registered. Following the lawsuit, Bittrex was forced to shut down its U.S. exchange in April, citing the harsh regulatory and economic environment.
Bittrex Global also faced additional charges from the SEC about Bittrex’s operation of a unified order book in conjunction with the latter.