Bittrex Global announced it will end most exchange operations and trading activity in the coming weeks.
Due to a continued complicated regulatory environment and the litigation settlement reached with the SEC by its U.S. arm, Bittrex Global is scheduled to shut down its trading activities globally on December 4.
The news was made not long after the company’s American branch was shut down due to legal issues from the Securities and Exchange Commission (SEC) in the United States. Starting on December 4, Bittrex Global will stop trading and only enable its users to withdraw their assets.
A big part of this winding-down process is the exchange’s decision not to allow withdrawals in U.S. dollars, instead recommending that users convert to euros or cryptocurrencies. Concerns about the availability and liquidity of cash for customers with assets denominated in different currencies may be raised by this requirement.
Background to this move includes Bittrex’s U.S. subsidiary consenting to a $24 million settlement with the SEC in August after the company was accused of acting as an unregistered exchange, clearinghouse, and broker in April.
It’s interesting to note that, despite being the target of the SEC as well, Bittrex Global did not participate in this settlement. Oliver Linch, CEO of Bittrex Global, stressed the differences between Bittrex U.S. and Bittrex Global as independent companies.
However, the regulatory scrutiny and consequent legal actions have damaged both branches. The recent filing for bankruptcy of Bittrex U.S. and the court-approved sale of its American assets add another level of complexity to the company’s intricate financial story.
