Bittrex was founded in 2014 by three cybersecurity engineers with a goal to operate a world-class crypto exchange focused on trust. The crypto exchange prides itself in facilitating lightning-fast trades, dependable digital wallets and with industry-leading security. Bittrex offers access to top coin markets where traders can capitalize on trends and trade with confidence through its expansive market listings. The firm has a mobile application that is available globally and offers the same level of access, security, trading and capabilities of the best in-class regulated crypto exchange.
Despite the notable strides made by Bittrex, the firm has filed for bankruptcy in a federal court in Delaware. This development comes less than a month after the US SEC(Securities and Exchange Commission) accused the firm of operating an unregistered securities and crypto exchange. Bittrex US announced this development on Monday after filing for chapter 11 bankruptcy.
However, the firm noted that the bankruptcy filing will not affect Bittrex Global -a firm that serves customers outside the United States. For customers outside the US, Bittrex Global will continue its operations as is the norm.
Bittrex Global is a firm that is based in Liechtenstein and Bermuda, which strategically puts the company in a jurisdiction with world-class financial systems governed by revolutionary legislation. The firm operates under DABA( Digital Asset Business Act) in Bermuda and “The Blockchain Act” in Liechtenstein, that guides Transactions Systems Based on Trustworthy Technologies Act. The Jurisdiction also requires the firm to be compliant with KYC(Know-Your-Customer) and AML(Anti-Money Laundering) among other regulations. The company is fully licensed to conduct business under the Bermuda Monetary Authority(BMA) and registered in Bermuda. In the US, Bittrex Global operates a crypto exchange, Bittrex US, that has now filed for bankruptcy.
Early in April, Bittrex had announced that it had plans to close its operations in the use. The firm cited an hostile and uncertain regulatory environment as the major reason for its plans. This development was announced by Bittrex co-founder, Richie Lai. Shorty after this announcement, the SEC filed charges against Bittrex, its co-founder and former CEO, William Shihara. The charges also included Bittrex US affiliate Bittrex Global. The charges filed included operating an unregistered national securities exchange, broker and clearing agency.
The SEC is claiming that the Bittrex has facilitated the buying and selling of cryptocurrencies and crypto assets since at least 2014 and earning at least $1.3 billion in revenue from transaction fees. More specifically, the agency targeted Bittrex’s token listings including OMG, ALGO, Dash, Monolith(TKN), Naga(NGC) and IHT – a real estate protocol. The commission claims that the above listed tokens constitute unregistered securities offerings.
Bittrex on the other hand has refuted the allegations and as of April, the firm had advised its users to withdraw their funds from the platform while promising that their funds were secure and remained safe. This is not the first time the SEC is conducting scrutiny on crypto services providers. The commission has in the past indicated its focus on Binance and has already brought charges on several crypto exchanges and frozen assets of many entities in this sector.
