Connect with us
Active Currencies 14904
Market Cap $2,482,974,654,567.00
Bitcoin Share 51.27%
24h Market Cap Change $-0.41

Bittrex’s court-approved bankruptcy plan marks end of U.S. operations

2min Read

While Bittrex exits the U.S. market, Bittrex Global remains open, serving international clients amidst regulatory uncertainties.

Share this article

  • The company reached a settlement with the SEC in August.
  • Its international arm, Bittrex Global, continues to operate in other regions.

Bittrex has received court approval for its revised bankruptcy plan, marking the end of its U.S. operations. The approval was granted by Judge Brendan Shannon during a hearing held in Delaware.

This comes after Bittrex filed for Chapter 11 bankruptcy protection in May, a move prompted by charges from the Securities and Exchange Commission (SEC) accusing the exchange of running an unregistered trading platform.

The company reached a settlement with the SEC in August, agreeing to pay $24 million in penalties.

The court decision to approve Bittrex’s liquidation plan is a key step toward repaying the remaining creditors.

Notably, while Bittrex has halted its operations in the United States due to regulatory challenges, its international arm, Bittrex Global, continues to operate in other regions.

In August, Oliver Linch, the CEO of Bittrex Global, assured those concerned about any connections to the U.S., given the regulatory uncertainty in the region, that the exchange remains open for business, particularly for those interested in dealing with a non-U.S. regulated digital assets platform.

Winding down U.S. business after SEC settlement

This development marks a significant shift from Bittrex’s position as one of the largest cryptocurrency exchanges in the United States.

At the beginning of 2018, Bittrex boasted a substantial market share, representing nearly 23% of USD trading volume.

However, the exchange’s standing dwindled significantly over the years. By 2021, its market share had declined to below 1%, and it has struggled to regain its former position.

SEC swoop on crypto exchanges sums up regulation in the U.S.

Owing to the lack of regulatory clarity in the U.S. for crypto companies, the SEC has been on a coordinated crackdown on exchanges.

In June 2023, the SEC charged Coinbase with unlawfully operating as an unregistered national securities exchange, broker, and clearing agency. The SEC claimed that Coinbase has combined these traditional financial functions without the required registration.

Furthermore, the agency claimed that Coinbase engaged in an unregistered securities offering through its staking-as-a-service program. This allowed customers to earn profits from blockchain transaction validation services.

The SEC also charged Binance [BNB], Binance’s U.S.-based affiliate BAM Trading Services Inc., and their founder, Changpeng Zhao, with multiple securities law violations.

The SEC alleged that Binance and Zhao publicly claimed to restrict U.S. customers while secretly allowing high-value U.S. customers to trade on Binance behind the scenes. The complaint further added that Zhao and Binance commingled customer assets, manipulated trading volumes, and diverted assets to an entity owned by Zhao.

Both Binance and Coinbase have slammed the SEC for their respective charges. The lack of clear regulations and SEC’s crackdown has led to many exchanges relocating to crypto friendly locations.

Share

Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.