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Liechtenstein-based cryptocurrency exchange Bittrex Global has announced that it will suspend all operations by the 4th of December as it prepares to shut down following a bruising battle with the SEC.
The announcement came months after its United States arm, Bittrex, stated it was shutting operations in response to the unfavorable regulatory environment in the country.
Bittrex Global To Shut Down
According to the update published on its website on the 4th of November, Bittrex Global will begin winding down its trading operations, beginning with the suspension of trading activity on the 4th of December. The move by the exchange comes after a series of regulatory challenges that have hindered operations. This includes the closure of the exchange’s US operations.
Bittrex Global stated in a post on X,
“It is with great regret that we announce that Bittrex Global has decided to wind down its operations. Customers will only be able to withdraw assets as part of the winding down process. All our customers are strongly encouraged to log into their account and withdraw assets as soon as possible.”
Users Urged To Exercise Caution
Bittrex also stated that it had not taken the decision to shut down lightly and understood the inconvenience it could cause its customers. However, the exchange urged customers to refrain from making any deposits on the platform, as it could not guarantee that the funds would be received safely, and the funds could be permanently lost.
“Do not make any deposits to our platform. We cannot guarantee that they will be received safely. If you do send a deposit, your funds may be permanently lost as a result of the attempted transfer.”
Bittrex shut its US exchange in Mach, stating that it was no longer economically viable to continue operations after a $29 million settlement with the Securities and Exchange Commission over alleged securities law violations.
At the time when the exchange shut down its US operations, Bittrex co-founder and CEO Richie Lai had stated,
“Regulatory requirements are often unclear and enforced without appropriate discussion or input, resulting in an uneven competitive landscape.”
Bittrex had filed for Chapter 11 protection in a US bankruptcy court in May after settling with the SEC and paying a fine of $24 million, including interest. The platform then reopened withdrawals for users after approval from the Delaware bankruptcy court. The SEC also pressed charges against Bittrex Global, alleging it operated a single shared order book with Bittrex. It isn’t clear that the SEC’s actions contributed to the winding down of the cryptocurrency exchange.
Bittrex ranks among the top 100 cryptocurrency exchanges in the world and has a 24-hour trading volume of just under $6 million. In comparison, Coinbase has a daily trading volume of $1.8 billion and Binance $7 billion, according to data from CoinGecko. Bittrex Global has also discontinued its referral program and stopped all promotions as part of the exchange’s winding down process.
The exchange has also promised to support its customers through the process and assured users its team will be available to answer any questions and address concerns.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.