Florida regulator accuses Bittrex of violating state laws

The Florida Office of Financial Regulation (OFR) has accused the cryptocurrency exchange Bittrex of violating state laws, filing a complaint against it prior to bankruptcy.

According to судебным документам, the platform commingled customer assets with operating capital and did not fulfill its obligations in full.

“The decision as to which of these violations to bring in our administrative complaint lies entirely within the regulator’s purview,” said the regulator’s assistant general counsel.

From October 2022 through March 2023, the OFR, in cooperation with agencies from other states, investigated the company’s activities.

On April 17, the Florida OFR sent a complaint to the exchange. On the same day the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Bittrex and Bittrex Global in connection with violations of the law.

After some time, the company filed a motion to dismiss the SEC’s proceedings, arguing that the agency lacks authority to regulate cryptocurrencies.

Back on March 31, 2023, Bittrex announced the cessation of its operations in the United States, and on May 8 the company filed for bankruptcy.