- Bittrex crypto exchange had to pay $29 million in fines to the US Treasury Department for “violations.”
- The Bittrex crypto exchange supported a 24-hour trading volume of $3.27 million.
- The exchange has more than 100,000 creditors, with liabilities and assets ranging between $500 million and $1 billion.
While the crypto market is trying to gain control of its volatility, the grip of its regulation has become its undoing. Within the first few months of 2023, the Securities and Exchange Commission (SEC) has rained lawsuits on several crypto exchanges. Many survived with a hefty fine, but others weren’t so lucky. Crypto exchange Bittrex has filed for bankruptcy after the SEC sued its operations. Many have claimed that the organization seeks to prevent another crypto crash, while others view it as an indirect attempt at control.
Both sides of the coin gove compelling arguments, but the fact is that the SEC has caused significant damage to the crypto ecosystem. Unfortunately, Bittrex could not sustain its operations due to the compelling evidence and loopholes within the crypto regulation system.
Who are crypto exchange Bittrex
Bittrex crypto exchange is among the renowned global crypto firms today. Bill Shihara, Richie Lai, and Rami Kawach funded the organization in 2014 after noticing the trajectory of Bitcoin’s value. Initially, the crypto exchange offered only crypto-to-crypto trading but over the years, it improved its features to accommodate the rapid adoption of digital currency. Its fiat-to-crypto part is relatively popular amongst users and has paved the way for Web3 by making digital currency easily accessible to users.
Bittrex crypto exchange supports over 250 digital currencies. Since its initial launch, the organization has made a name for itself within the crypto markets. Its easy-to-use interface allows users to trade through a desktop or mobile platform, which supports Android and IOS. One of its primary selling features is its “Instant Buy/Sell” option. New and veteran crypto traders can easily purchase or sell crypto with debit cards, credit cards, or bank accounts.Its integration with traditional financial systems has led to the rapid growth of fiat-to-crypto collaborations. Bittrex crypto exchange has boasted of its security and adherence to crypto regulations since 2014. The platform keeps most user funds in cold storage, significantly reducing attack surfaces.
In addition, the organization has employed two-factor authentication and wallet and IP address allowlisting. This ensures that users can safely interact with their digital currency. The organization has held its position and rivalled tans such as the Kraken Exchange. According to their official website, the Bittrex crypto exchange supported a 24-hour trading volume of $3.27 million.
However, despite its numerous features and reputation, it was not exempt from the 2022 crypto crash.
The downfall of the Bittrex crypto exchange
The crypto markets have significantly suffered from the 2022 FTX crypto crash. Its damages rendered many crypto exchanges obsolete and many coins useless. Africa’s crypto exchange which gained a record high, came crashing down during the aftermath. Since then, the SEC has sworn to uphold the crypto regulations. Due to its tight grip on various crypto regulations—the SEC has set its eyes on the Bittrex crypto exchange.
In April, the SEC sued the exchange, alleging it operated a national securities exchange, broker and clearing agency. According to their statement, the SEC claimed that the former CEO encouraged crypto asset issuers seeking to make their token available on the company’s platform to delete public statements that could lead regulators to investigate.
According to both CEOs, the allegations were inaccurate, and they intended to fight for their rights in court. Unfortunately, the organization faced heavy losses due to the slow crypto markets. On February 2023, the organization had to let go of 83 employees to ensure its survival. Unfortunately, with the SEC on their necks and the crypto crash still a fresh wound, the organization had no choice but to file for bankruptcy.
Bittrex crypto exchange had to pay $29 million in fines to the US Treasury Department for “violations” of sanctions on specific countries and anti-money laundering laws.
The exchange has more than 100,000 creditors, with liabilities and assets ranging between $500 million and $1 billion. Unfortunately, the exchange is the last victim of the crypto crash alongside LazerPay as both organizations seek to find a way to save face.
The SEC has rattled the crypto markets for the past six months stopping at nothing to prevent another FTX scenario. In truth, it became clear that scammers can also mask as legitimate organizations for years. What made the 2022 crypto crash severe was the fact that no one initially expected it.
FTX had a steady reputation as one of the oldest crypto exchanges to gain immense fame. Throughout its years, it aided multiple other exchanges, and thus, when the company suddenly “lost” funds, it dealt a significant blow to the crypto markets.
However, some say that the Securities and Exchange Commission is using this opportunity to gain control of the crypto market. It has stopped at nothing to sue any crypto exchange that does not adhere to its set crypto regulations. Both sides of the coin can be true.
Given the high volatility and promising future of digital currency, finding a way to control the crypto market will be impressive. Although existing crypto regulations still provide plenty of loopholes for organizations to “vanish” with customer funding.
Given the case, the fact remains that the Bittrex crypto exchange filed for bankruptcy, and it’s only a matter of time before it completely shuts down.