The Florida Office of Financial Regulation (OFR) is considering taking action against Bittrex, a US cryptocurrency exchange that filed for Chapter 11 bankruptcy protection in May. Brandon Greenberg, assistant general counsel for OFR, stated in a filing on July 5 that st ate regulators had been informed of Bittrex's alleged failure to comply with Florida law. The OFR retains the discretion to decide whether to charge Bittrex or not.
The US Securities and Exchange Commission (SEC) had previously filed a complaint against Bittrex on April 17, which led to the exchange surrendering its Florida money transmission license on April 30. Subsequently, on May 8, Bittrex filed for bankruptcy. De despite the license surrender , the OFR had stated that it would continue to pursue the complaint, which included allegations of failure to separate customer assets, failure to maintain security deposits, and other claims. Bittrex had announced its decision to wind down its US operations due to regulatory uncertainty and subsequent SEC enforcement action, leading to a bankruptcy case and potential lawsuits. The exchange recently informed certain users that they will be able to access their accounts and withdraw funds until August 31.
While the SEC filed separate charges against Bittrex Global, the global arm of the exchange, the international operations have been less impacted by regulatory and financial challenges compared to the US exchanges. Bittrex Global operates under regulations in Liechtenste in and Bermuda, providing a level of immunity from the issues faced by its US counterpart.
