Liechtenstein-based cryptocurrency exchange Bittrex Global had declared its intention to wind down operations, commencing with the suspension of trading activities on December 4.
Published on November 20 via its official website, Bittrex Global urged users holding U.S. dollar balances to convert their funds to euros or cryptocurrency before December 4. Failure to do so may result in users being unable to withdraw their assets. The platform emphasized the importance of this action to its user base, stating that the decision was not made lightly.
Trading Halt and Limited Withdrawals
On December 4 2023, Bittrex Global will suspend all trading activities on its platform. During this period, users will only have the option for specific withdrawals. The exchange highlighted the potential inconvenience to its valued customers but assured them that this decision was carefully considered.
Bittrex Global issued a clear warning, advising users against making any deposits to the platform. The exchange explicitly stated that it could not guarantee the safe receipt of deposits and cautioned that funds might be permanently lost in the process.
Bittrex Global Facing Regulatory Woes and Chapter 11 Protection
This announcement comes approximately nine months after Bittrex, the U.S.-based arm of Bittrex Global, announced its plan to wind down operations in the United States due to regulatory uncertainty. The U.S. Securities and Exchange Commission (SEC) charged Bittrex for operating as an unregistered exchange, broker, and clearing agency. Bittrex filed for Chapter 11 protection in May, settling with the SEC for $24 million in August.
In April, the SEC also charged Bittrex in connection with its operation of a shared order book alongside Bittrex. While it remains unclear if these regulatory actions influenced Bittrex Global’s decision to wind down operations, the exchange’s troubles on both U.S. and global fronts indicate a challenging regulatory environment for crypto exchanges.