United

April

Green Light

Bittrex, a leading U.S. cryptocurrency exchange, faces closure after gaining court approval. The once-thriving platform, a cornerstone in American crypto trading, prepares to shutter its services, leaving traders and investors contemplating the void it will create in the industry. The court’s definitive decision marks a turning point, prompting a dramatic shift in the landscape of digital exchanges. 
After many run-ins with US federal authorities, Bittrex, a Seattle-based company, filed for bankruptcy on Monday, and Judge Brendan Shannon of the US Bankruptcy Court for the District of Delaware authorized the proposal. 
Because of the regulatory uncertainties in the US, Bittrex Global CEO Oliver Linch assured users in August of last year that the company’s global services would still be accessible. 
Bittrex Global, a company domiciled in Liechtenstein that serves clients outside of the United States, is unaffected by the change. 
Bittrex filed for Chapter 11 bankruptcy protection in May after the US Securities and Exchange Commission allegedly accused the company’s American affiliate of running an unregistered exchange. In August, the business reached a $24 million settlement with the SEC in response to the development. 
Bittrex had previously run afoul of US regulators in October 2022, when the Department of the Treasury’s Office of Foreign Assets Control (OFAC) fined the exchange $29 million. The OFAC fine was the result of “deficiencies connected to Bittrex’s sanctions compliance procedures,” which affected users in Cuba, Iran, Sudan, Syria, and the Crimean area of Ukraine. 
According to court documents given by Randall Reese of Chapter 11 Dockets, a bankruptcy tracking organization, Bittrex is said to have over 100,000 creditors with estimated debts and assets ranging from $500 million to $1 billion. 
The crypto exchange saw a significant outflow of funds totaling $423 million in April subsequent to the announcement of its closure. This was further compounded by an additional withdrawal of $143 million during the ensuing bankruptcy procedures. Several users choose to discontinue their participation in the exchange because of their reluctance to undergo bankruptcy proceedings. 
In July, Bittrex was confronted with a lawsuit filed by the Florida Office of Financial Regulation (OFR), which accused the company of committing various infractions of state laws. 
Nevertheless, the case initiated by the Office of Financial Regulation (OFR) was submitted subsequent to Bittrex’s application for bankruptcy protection, thereby precluding creditors from pursuing legal action or seizing Bittrex’s assets. 
As a result of Bittrex exiting the US market, there will probably be less rivalry in the US cryptocurrency arena, which could be advantageous for already-established exchanges. 
On the other hand, it might also make it harder for American investors to use cryptocurrency exchanges. If other major exchanges also adopt similar measures, US investors may have limited choices in terms of reliable investment possibilities. 
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One Of The Biggest Crypto Exchanges Gets Green Light To Halt US Operations: What Lies Ahead?

Bitcoinist

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