Not long ago, the crypto exchange Bittrex was sued by regulators in the US, so what is Bittrex and its controversies?

The United States Securities and Exchange Commission (SEC) has accused crypto exchange Bittrex of operating as a national stock exchange, broker and clearing house in violation of federal law.

Former CEO Bill Shihara and Bittrex Global GmbH are also facing prosecution.

The regulator stated in a press release published on Monday (17/4/2023) that Bittrex is working with crypto issuers to remove “problematic statements” that could come to the attention of the US SEC, including price forecasts and statements indicating “profit expectations.”

The US SEC argues that Bittrex should register as an exchange, clearing house and broker because it offers the services of all three entities.

What is Bittrex?

Bittrex is a crypto exchange that allows users to exchange various cryptocurrencies for other cryptocurrencies, or fiat currency. Bittrex was founded in 2013 by Bill Shihara, Richie Lai, Rami Kawach and Ryan Hentz, and is headquartered in Seattle, Washington, United States.

This crypto exchange offers a variety of crypto assets for trading, including Bitcoin, Ethereum, Litecoin, Ripple and others. It is known for its advanced trading features, including a customizable trading interface, real-time market data and automated trading via API.

To use Bittrex, users must create an account and complete a verification process which includes providing personal information and documentation. Once verified, users can deposit funds into their account and start trading crypto. Bittrex charges a fee for each trade, which varies based on the user’s trading volume.

Bittrex is considered one of the most reliable and secure crypto exchanges in the industry, due to its advanced security measures such as two-factor authentication (2FA) and incremental wallet encryption. The platform has never been hacked, and has implemented strict security protocols to protect user funds.

In addition to its standard trading platform, Bittrex also offers a professional trading platform called Bittrex Global, which is designed for experienced traders who need more advanced tools and features. Overall, it is a popular choice among crypto traders who value security, reliability and a variety of trading options.

However, as is the case with every crypto exchange, users should be aware of the risks involved in trading cryptos and should carefully consider their investment strategy before trading on the platform.

This crypto exchange has also expanded its services over the years, offering users additional features.

For example, this exchange has launched an Over-the-Counter (OTC) trading desk, which allows users to make large trades without affecting the market. The OTC desk provides users with personalized service and trades are completed outside of the standard order book of the exchange.

Bittrex also offers a staking service, which allows users to earn rewards by holding certain cryptocurrencies in their Bittrex account. Staking rewards are based on the amount of crypto held and the duration of staking.

Additionally, Bittrex has launched Bittrex Pay, a payment processing service that allows businesses to accept crypto payments from customers. Bittrex Pay supports more than 40 crypto assets and allows instant settlement in US dollars or stablecoins.

Overall, it is a crypto exchange that offers a wide range of trading options, state-of-the-art security measures as well as additional services such as OTC desks, staking and payment processing. Even though it is considered a trusted exchange, users of the platform should always exercise caution and do their own research before making any investment.

The controversy

However, there have been several controversies associated with Bittrex over the years. One of the most glaring controversies occurred in 2017, when the exchange deleted several cryptos without providing a clear explanation.

This raises concerns about the transparency and fairness of the write-off process.

Additionally, there have been reports of users experiencing difficulties with Bittrex customer support, including long response times and inadequate support for account-related issues. Another controversy that has befallen this exchange is related to the freezing of user accounts originating from certain countries or regions.

The exchange has come under fire for its account registration restriction policy and limited availability in some regions, which has led to complaints from users unable to access the exchange.

Despite the controversy, the exchange has taken steps to improve its service and address the issue.

For example, this crypto exchange has implemented a more transparent and efficient write-off process and improved its customer support services. Bittrex has also expanded its availability in some regions, although it is still unavailable in some areas due to regulatory reasons.

Despite the controversies associated with Bittrex, the exchange continues to operate as a trusted and reliable crypto trading platform.