- The regulator accuses the exchange of violating state laws
- Recently, Bittrex announced that it will sue the SEC
- OFR audited the company from October 2022 to March 2023
American cryptocurrency exchange Bittrex faced with problems in Florida. The local regulator accused the exchange of violating several state laws before Bittrex filed for bankruptcy in May, and also advised her to find ways to resolve the dispute.
OFR Assistant General Counsel Brandon Greenberg, in a statement, objected to Bittrex’s request for Automatic Stay. This law prohibits certain creditors from initiating or continuing action against a company that is in bankruptcy. Greenberg confirms that the regulator provided advice to the American company to explore the possibilities of settling the charges that were brought against it.
The platform has received accusations that it failed to properly separate client assets from the company’s operating capital and failed to ensure that surety requirements were met at all times.
Also in the statement writes that from October 2022 to March 2023, OFR, together with financial regulators from three states, conducted a “multi-state” review of Bittrex.
In an announcement on March 31, Bittrex announced that it was ending its operations in the US, citing the uncertainty in the regulatory and economic environment. Later, on May 8, the cryptocurrency exchange filed for bankruptcy. The company has approximately 100,000 creditors with total liabilities ranging from $500 million to $1 billion, according to court documents.