As the legal peril against non-compliant firms intensifies, crypto firms have taken strategic action to comply with the US Securities and Exchange Commission (SEC). Despite the efforts to meet the regulatory requirements, the ongoing SEC crackdown on crypto firms has forced vital market players to cease operations.
On Monday, Bittrex Global joined the string of companies at the edge of closure of operation due to the long waging war with the SEC. The Bittrex team confirmed plans to wind down operations as of December 4.
Bittrex Global to Sunset Trading Activities
The troubled crypto exchange stated that all trading activities would be unavailable two weeks from now. In an X post, Bittrex Global confirmed the crypto exchange has decided to wind down operations due to SEC legal action.
The tweet demonstrated that the crypto exchange felt apologetic about the closure of Bittrex’s operation since the firm has been operational for almost two decades. In the X post, the Bittrex team advised the customers to withdraw their assets from December 4 to allow the firm to start the winding down process.
The Bittrex team shared the procedure for withdrawing the funds and encouraged the customers to start the withdrawals immediately. In a subsequent post, the crypto exchange confessed that the decision to close Bittrex’s operation stemmed from the SEC regulatory action against the company.
Impact of SEC Crack Down on Crypto Firms
At the beginning of this year, the Bittrex team closed its US operations, citing the unclear regulatory environment. The Bittrex team regretted that despite the efforts to comply with the law, most US regulatory requirements were vague.
The crypto exchange blamed the lawmakers for enforcing rules without consulting the public. The exchange added that lack of regulatory clarity has created unhealthy competition in the crypto industry.
An X post from the chief executive of Bittrex, Richie Lai, revealed that the US was not economically viable, hindering the crypto exchange from attaining its core objectives. The CEO lamented that the current regulation for digital assets and economic slowdown has made it difficult for the exchange to continue operating in the US. The closure of Bittrex US resulted in the dismissal of around 80 employees.
Bittrex Files for Chapter 11 of Bankruptcy Protection
After sunsetting the US operations, the SEC charged the crypto exchange for contravening the securities laws by offering customers unregistered securities. Responding to this allegation, the Bittrex team neither denied nor admitted that it provided unregistered financial products.
The court ordered Bittrex to settle a court penalty amounting to around $24 million within 90 days after liquidation. In May, Bittrex filed for Chapter 11 of Bankruptcy Protection at a court in Delaware. The file of Chapter 11 aimed at allowing the crypto exchange to restructure.
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