Bittrex shutting down: What can exchange do differently to avert this trend.

[Palazodeen]

Bittrex shutting down: What can exchanges do differently to avert this trend.

Exactly one year ago since the unfortunate collapsed of FTX, Bittrex has also announced the closure of its services after nearly a decade of operation effective December 4th 2023.

The reason for the closure has not been made public as of this time but it's worthy to note that the exchange U.S arm of operation filed for bankruptcy in May following a legal indictment by the security and exchange commission (SEC) for operating a security exchange without the right approval but one good news is that users assets/funds are safe and are available for withdrawal as disclosed by the exchange official X platform. A different scenario compared to that of FTX.

This news further posses that there are still significant risk accompanied by this evolving industry but the question is what can exchanges do to ensure that they are able to stand the test of time just like the traditional financial institution.

There are quite a few other exchanges that has proven to be reliable and dependable on the long run because they have been investing heavily in there ecosystem but this kind of news leaves one to wonder if such scenario won't later occur in future.

In the wake of Bittrex users seeking another exchanges, which exchange do you recommend? and do you think they have what it takes to stand the test of time.

[Lanatsa]

Are you aware that Bittrex Global and Bittrex are different?

Bittrex Global is on US.

Crypto Exchange Bittrex Global Shuts Down Following Battle With SEC
https://decrypt.co/206761/crypto-bittrex-global-shuts-down-sec

According into  the report.
Bittrex shuttered its U.S. exchange because it was not "economically viable" to continue doing business following a lawsuit and $29 million settlement with the SEC over alleged securities laws violations.
Source

So this is again talking about SEC issues. Im not really that shocked on this one.

[joniboini]

Either they move away from the US, stop servicing US customers, or be as rich as Binance to pay $4 billion when the government asked for it. If you're a US customer maybe P2P is a good alternative if what you need is just a simple buy and trade, or wait for a while before choosing any new exchange since it doesn't seem like SEC is going to stop soon. There is a high chance they will sue every exchange before even giving a clear guideline on how to register etc. CMIIW.

[lombok]

What happened at Bittrex has been going on for a long time and is only now final. And as we know. America gets free BTC again from Bittrex asset confiscation. If problems like this are not resolved, I think the bitcoin ETF will experience delays, plus now Binance has started dealing with the SEC. I think all large exchanges entering America must be prepared to face the SEC like previous exchanges.

Poloniex, Bittrex, Bitmex were destroyed one by one. FTX with a big case of money laundering.

The US indirectly acted to establish a monopoly.

[dansus021]

What happened at Bittrex has been going on for a long time and is only now final. And as we know. America gets free BTC again from Bittrex asset confiscation. If problems like this are not resolved, I think the bitcoin ETF will experience delays, plus now Binance has started dealing with the SEC. I think all large exchanges entering America must be prepared to face the SEC like previous exchanges.

Poloniex, Bittrex, Bitmex were destroyed one by one. FTX with a big case of money laundering.

The US indirectly acted to establish a monopoly.

Crypto Exchange Bittrex Global to Shut Down
All trading on the platform will be disabled on Dec. 4, several months after Bittrex's U.S. arm filed for bankruptcy and stopped operations. - https://www.coindesk.com/business/2023/11/21/crypto-exchange-bittrex-global-to-shut-down/

I agree after watching the thread I immediately looked at what happened to the Bittrex I know that Bitrex Global is winding down and filed chapter 11 in the US but I dont expect the Bitrex Global to also want to close its operation.

and US again and again is the key problem I know that they say it is for protecting the customer but the way they doing impact to all crypto investor. 

The Recent news is Binance founder Changpeng Zhao agrees to step down and plead guilty to violating criminal US anti-money laundering requirements.

Binance will also admit wrongdoing and agree to pay $4.3 billion in fines.

CZ is scheduled to appear in Seattle federal court Tuesday afternoon and enter his plea.  - https://www.wsj.com/finance/currencies/binance-ceo-changpeng-zhao-step-down-plead-guilty-01f72a40

[royalfestus]

I am not surprised by the news, If you have been using Bittrex for a while now, you will notice an increase in fake orders and a decline in trade volume. The exchange close my account last year because I didnt visit. What exchange does that when we know bear market is always low? Just a lot for a day with Binance CEO stepping down and Kraken lawsuit

[OcTradism]

and US again and again is the key problem I know that they say it is for protecting the customer but the way they doing impact to all crypto investor. 

They want to charge money from exchanges but do they take those legal actions against exchanges because they want to protect their citizens who are cryptocurrency users, investors, traders. I believe it is not their reason to take down centralized exchanges, peer to peer marketplaces in their country like Paxful.

I like the hearing of Garry Gensler in the US. Congress earlier this year, one of Senator told that those recent legal actions of SEC against cryptocurrency companies are to force them moving from the USA. and migrate to other nations.

The Recent news is Binance founder Changpeng Zhao agrees to step down and plead guilty to violating criminal US anti-money laundering requirements.

Binance will also admit wrongdoing and agree to pay $4.3 billion in fines.

CZ is scheduled to appear in Seattle federal court Tuesday afternoon and enter his plea.  - https://www.wsj.com/finance/currencies/binance-ceo-changpeng-zhao-step-down-plead-guilty-01f72a40

If he is guilty, he has to step down and it is not his choice. He only proactively did this, announced this to avoid worse consequences on Binance.

Different guilt but action is not different from BitMEX CEO.
BitMEX CEO Arthur Hayes leaves role after US charges

[lombok]

and US again and again is the key problem I know that they say it is for protecting the customer

Customer = user or investor or trader.
Consumer protection? like crypto is only filled with Americans.

Yes, we already know and understand how rotten this is, still the crypto monopoly attempt by the US will not succeed if we are all strong, Bitcoin or crypto without America can also run well. I remember when the US tried to control and monopolize gold. Almost the same scheme 🤔

[Woodie]

Another one bites the dust at the hands of SECs doing, so with this aggressive approach of targeting all exchanges that comes up on their radar as one that is serving US citizens...do we have any exchanges that are compliant to SECs rulebook

And business being a numbers game, how best can one of the biggest economies in the world be served atm because a DEX isn't enough...

[adaseb]

Bittrex has been going downhill since 2017 pretty much. It was a great exchange back in 2014 because they listed pretty much all of the newest altcoins you were able to mine and had a great platform.

However they were forced to do KYC and that’s when the exchange started to experience problems and lose market share. It hasn’t been a leading since 2015-16 pretty much, just like Poloniex.

[Hyphen(-)]

There are quite a few other exchanges that has proven to be reliable and dependable on the long run because they have been investing heavily in there ecosystem but this kind of news leaves one to wonder if such scenario won't later occur in future.

And do you think any centralized exchange can be consider as reputable by the crypto community again?

They are always going against their words; they will promise external security, privacy protection, and lots more, but most of them cannot be trusted because they might leak our personal data or sell it out anytime; if they did not leak or sell our data, then they would follow the trend of going bankrupt or being hacked.

Just yesterday, we heard so much news regarding one of the world leading exchanges, Binance, about the confession the CEO made for violating some financial security rules and his resignation as Binance CEO. This type of news is enough for us to start thinking very seriously about the personal information we are submitting to these exchanges during KYC because we are not safe with them.

[hugeblack]

Every about 7 years, the TOP BITCOIN CRYPTO EXCHANGE list changes, and this happens over and over again. Therefore, I would not be surprised if all the platforms we know become non-existent or their ranking changes in the coming years. Therefore, I do not claim to be alarmed, as there are platforms that are leaving, there are other methods that are emerging, but the only problem is that identity verification restrictions are increasing to verify the residential address of the source of income, so if you care about your privacy, start directly using P2P DEXs.

[gunhell16]

I am not surprised by the news, If you have been using Bittrex for a while now, you will notice an increase in fake orders and a decline in trade volume. The exchange close my account last year because I didnt visit. What exchange does that when we know bear market is always low? Just a lot for a day with Binance CEO stepping down and Kraken lawsuit

Actually, I noticed that too. I thought maybe I was the only one who noticed, but it's not; someone else also noticed what I saw in the exchange. Like you, my account was also closed after a few months or a year before I opened it again, but when I tried to open it again after many months, I couldn't open it.

Even in other exchanges similar to the system Bittrex uses, if you become inactive for 6 months, your account will also be frozen. That's the bad thing about centralized exchange platforms.

[rat03gopoh]

but the question is what can exchanges do to ensure that they are able to stand the test of time just like the traditional financial institution.

Don't deal with the US market, that's all. Traditional financial institutions are government-facilitated and driven entities, it is not an industry that is as easy as crypto to make money without restrictions.

In the wake of Bittrex users seeking another exchanges, which exchange do you recommend?

Find it here https://www.coingecko.com/en/exchanges.

[Palazodeen]

but the question is what can exchanges do to ensure that they are able to stand the test of time just like the traditional financial institution.

Don't deal with the US market, that's all. Traditional financial institutions are government-facilitated and driven entities, it is not an industry that is as easy as crypto to make money without restrictions.

In the wake of Bittrex users seeking another exchanges, which exchange do you recommend?

Find it here https://www.coingecko.com/en/exchanges.

Trust scores are good indicators but I think a lot more should be considered with the recent unfolding in the industry. We can see a lot going round about Binance. Even though this might reduce their market share, users still have some level of confidence because they have verifiable proof of reserve and customer protection fund. Aside Binance, the 2nd and perhaps the only exchange with customer protection fund and verifiable proof of reserve that has their wallet address public is Bitget. So it's important to know where to keep our funds to avoid stories that touches the heart.

[rat03gopoh]

We can see a lot going round about Binance.

You mean something they named it SAFU?
What you need to know is that CZ is now leaving the company as per today. I don't understand how you will follow in the footsteps of an exchange that is even more frequently threatened with regulation.

is Bitget

I've heard of that exchange, yeah here: https://bitcointalk.org/index.php?topic=5472656

[VicManton]

Bittrex has been going downhill since 2017 pretty much. It was a great exchange back in 2014 because they listed pretty much all of the newest altcoins you were able to mine and had a great platform.

However they were forced to do KYC and that’s when the exchange started to experience problems and lose market share. It hasn’t been a leading since 2015-16 pretty much, just like Poloniex.

Being asked to KYC can't be the reason why they're shutting down. Bitget was KYC free before they had to comply with regulations to incorporate KYC for their users. So far so, nothing seems to be going out of the ordinary or some sort of irregularity with them. There must be something. I'm thinking bankruptcy

[aima55]

Another one bites the dust at the hands of SECs doing, so with this aggressive approach of targeting all exchanges that comes up on their radar as one that is serving US citizens...do we have any exchanges that are compliant to SECs rulebook

And business being a numbers game, how best can one of the biggest economies in the world be served atm because a DEX isn't enough...

To some extent, the exchange I know has been keeping up to tabs with regulations; Bitget, isn't even available directly in the US unless you wanna access it through VPN. SEC is really doing the most! Driving out good players out of their jurisdictions does no good to investors in those regions.

[dzungmobile]

Bittrex has been going downhill since 2017 pretty much. It was a great exchange back in 2014 because they listed pretty much all of the newest altcoins you were able to mine and had a great platform.

However they were forced to do KYC and that’s when the exchange started to experience problems and lose market share. It hasn’t been a leading since 2015-16 pretty much, just like Poloniex.

Before a golden time of Bittrex, it was a time of Poloniex but those exchanges both had shady things in operations and very bad infrastructures to run their platforms smoothly with explosion of cryptocurrency market in 2017. Then Binance stepped in and took over leading positions from Bittrex and Poloniex. Now, it's a time for Binance to go down.

Do anyone forget that how Binance security and audit team internally failed to detect massive deposit of Do Kwon after he minted massive LUNA tokens (now LUNC) and dumped it on Binance to kill many LUNA holders. Not sure a big exchange like Binance let it happened and if they did not agree something with Do Kwon for this, their internal teams actually had dead holes that were exploited by Do Kwon.

[Iamcrypticguy]

Bittrex has been going downhill since 2017 pretty much. It was a great exchange back in 2014 because they listed pretty much all of the newest altcoins you were able to mine and had a great platform.

However they were forced to do KYC and that’s when the exchange started to experience problems and lose market share. It hasn’t been a leading since 2015-16 pretty much, just like Poloniex.

Being asked to KYC can't be the reason why they're shutting down. Bitget was KYC free before they had to comply with regulations to incorporate KYC for their users. So far so, nothing seems to be going out of the ordinary or some sort of irregularity with them. There must be something. I'm thinking bankruptcy

Yes, perhaps issues like misappropriation of funds or non-compliance. So far, the mentioned CEX has consistently adhered to regulations, contributing to its steady growth.