After the bankruptcies of FTX, BlockFi, Celsius, Voyager Digital and others, another big name joined the list. That’s the once mighty exchange Bittrex.
Bittrex was one of the oldest in the industry, founded in 2014. The Seattle-based company’s US branch filed for bankruptcy, announcing that it would cease operations in the US.
However, Bittrex Global, which operates outside the US, will continue its business as usual, serving non-US customers.
So why was the problem only there? As they claim, there has been difficulty working with regulators. They could not withstand the pressure from the US Securities and Exchange Commission’s charges against the company and its former CEO.
For customers who have not yet withdrawn their money from the platform, the company said that their money remains safe.
The Bankruptcy Court will ultimately decide the method by which these funds can be claimed and distributed, with Bittrex stating that its intention is that they will be able to withdraw their money as soon as possible.
The bankruptcy filing states that Bittrex has more than 100,000 creditors, to whom it owes between $500 and $1 billion.
For its part, the SEC claimed that Bittrex was operating an unregistered platform that traded securities.
It has also accused the company of violations of the Bank Secrecy Act. Accusations that led Bittrex to agree to pay about $29 million after a settlement.
Is the SEC really protecting investors with the rigor it is showing?
Well, we’re not sure, as it directs them to platforms outside the US that are difficult to monitor because it lacks jurisdiction.
It’s no coincidence that even Nasdaq-listed Coinbase is planning to open a new platform outside the US.
The crackdown on them by the SEC may have been a major factor that led to the shutdown, but it is also true that Bittrex was also behind the competition.
According to Coingecko, the daily trading volume was 4 million. Way behind Binance, which averages 10 billion and Coinbase, with 1 billion.
In February, Bittrex had laid off 83 employees, citing market difficulties caused by the bankruptcies of other companies in the space.
Developments are running at high speed in the crypto space. It is not enough to be good, as is generally the case in other sectors of economic activity. You also have to be fast!
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