Bittrex Global, a cryptocurrency exchange based in Liechtenstein, has declared its intention to cease operations, beginning with a halt in trading activities scheduled for December 4.
In an update posted on its website on November 20, Bittrex Global advised its users holding U.S. dollars to convert their funds into euros or cryptocurrencies before December 4. After this date, the platform will stop trading activities and will only process certain types of withdrawals. The exchange emphasized the difficulty of this decision and acknowledged the potential inconvenience it may cause to its customers.
Bittrex Global also issued a warning against making any further deposits to the platform, stating that the safety of such deposits cannot be guaranteed. They cautioned that any deposits made after the announcement might result in permanent loss due to the ongoing transition.
This announcement follows a series of regulatory challenges faced by Bittrex, its United States-based counterpart. In April, Bittrex announced plans to wind down its U.S. operations by April 30, citing ongoing regulatory uncertainties. That same month, the U.S. Securities and Exchange Commission (SEC) charged Bittrex with operating as an unregistered exchange, broker, and clearing agency.
In May, Bittrex filed for Chapter 11 protection in a U.S. bankruptcy court. The company later settled with the SEC in August for $24 million in penalties and interest. Following approval from a Delaware bankruptcy court, Bittrex reopened withdrawals for its users.
Additionally, in April, the SEC charged Bittrex Global in relation to its operation of a shared order book with Bittrex. It remains unclear to what extent these regulatory issues influenced Bittrex Global’s decision to wind down its operations. The situation highlights the ongoing complexities and regulatory challenges facing cryptocurrency exchanges globally.
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