Crypto exchange Bittrex Global is winding down its operations.
Starting Dec. 4., the exchange will disable all trading activities on its platform and users will only have the option to withdraw their assets, signaling the beginning of the platform’s winding down process.
Bittrex assured users that all funds and tokens remain secure on the platform and can be withdrawn.
Users will be unable to directly withdraw USD holdings. Those with USD balances are required to convert these into either EUR or cryptocurrencies before they can proceed with withdrawals.
This conversion must be completed before the Dec. 4 deadline.
The closure underscores the intense competition, as well as the regulatory scrutiny, cryptocurrency exchanges face.
In May, the U.S. branch of Bittrex declared bankruptcy, and the court has since approved its bankruptcy plan. After receiving the green light in late October, Bittrex US has been authorized to begin liquidating its assets within the U.S.
In August, the U.S. division of Bittrex consented to a settlement with the SEC, agreeing to a payment of $24 million. Contrarily, Bittrex Global was not involved in any financial settlement as part of this agreement.
The SEC had previously filed charges against Bittrex in April, accusing the firm of functioning without proper registration as a broker, exchange, and clearing agency. These charges were also extended to include Bittrex’s Global branch.
Additionally, all ongoing promotions have been ceased, and the platform will now operate under its standard fee schedule.
Bittrex Global has issued a strong advisory against making any further deposits to the platform, warning that such deposits may result in permanent loss due to the ongoing transition.
While no specific deadline has been set for withdrawals post the trading suspension, the company urges customers to withdraw their funds as soon as possible.
This recommendation comes with a caution that a future deadline may be imposed by liquidators.
Bittrex Global’s Referral Program will also end. All rewards from trades executed up to Nov. 19 are expected to be paid.
Produced in association with Benzinga