Crypto Exchange Bittrex Bids Goodbye To US Due To Regulatory Guidelines Push

Unlike the recent crypto firms declaring bankruptcy, Bittrex was different in two ways one being it voluntarily chose to shut down its U.S. operations and the other being it never restricted customer access to accounts and neither faced funding shortfall.

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What Happened? Seattle-based defunct crypto exchange operator, Bittrex has been granted approval, by a Delaware court by Judge Brendan Shannon, for its revised bankruptcy and liquidation plan to repay its remaining creditors and close its U.S. operations, based on a court filing. However, it will continue to operate its global operations as Bittrex Global.

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The bankruptcy covers Seattle-based entity Bittrex, Inc., two Bittrex entities in Malta, and an affiliated entity, Desolation Holdings LLC. Its Liechtenstein-based entity, Bittrex Global GmbH, where non-U.S. services are offered, is not included in the bankruptcy proceedings.

Post customer withdrawal and repayments, the exchange is still estimated to have a surplus due to some long-inactive accounts where customers could not be reached and some other small accounts that the customers abandoned, Reuters reported. It remains unknown how the exchange will utilize these proceedings.

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Bittrex History Boasting almost 23% market share of USD support in early 2018, Bittrex’s share dropped below 1% in 2021 and never recovered. The exchange filed for Chapter 11 bankruptcy protection in May 2023 after the SEC charged it with operating an unregistered exchange. Later, in August 2023 the company settled the charges with the SEC for $24 million and decided to leave the U.S. market.

Benzinga's Future of Digital Assets conference is scheduled in New York on Nov.14. Attend and learn how regulatory guidelines can impact the operations of long-standing cryptocurrency exchanges. The gathering is seen as pivotal for the digital assets’ community. The event will spotlight the latest trends, innovations, and challenges in the digital asset realm.

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