Bittrex Global, a prominent digital cryptocurrency exchange, has declared it will shut down operations. This decision follows the severe decrease in its market share in the U.S., and customers are being urged to withdraw their funds in light of the impending closure.
This announcement comes as unfortunate news as Bittrex Global had reassured its customers months earlier of its continued service, even amid regulatory uncertainties. Once one of the leading exchanges in the U.S., the platform saw its market share plunge to less than 1% just this year.
Earlier this year, Bittrex’s U.S. branch had filed for Chapter 11 bankruptcy protection. This move arose post charges by the Securities and Exchange Commission for operating as an unregistered exchange. All trading activity on the Bittrex Global platform is anticipated to stop by December 4.
In continuation of its downfall, Bittrex also got entangled in legal charges for operation as an unregistered exchange, broker, and clearing agency, earlier this year. The company eventually settled its case with the Securities and Exchange Commission with a hefty penalty and interest of $24 million in August.
Regardless of the recent legal twists and shakes, Bittrex Global, located in Liechtenstein, provided no clear indication if regulatory actions influenced the decision to cease operations. Regardless, this significant closure underscores the importance of regulatory compliance in the volatile crypto market, adding intense pressure for other exchanges to follow suit.