OFR accuses Bittrex of violating Florida law
OFR accuses Bittrex of violating Florida law
The Florida Office of Financial Regulation (OFR) has filed a series of charges against cryptocurrency exchange Bittrex for violating state law by filing a lawsuit against the company prior to its bankruptcy.
The complaint was filed with the court by the OFR before Bittrex declared bankruptcy. It alleges that the exchange commingled client assets with working capital and failed to pay its obligations in full.
OFR's general lawyer stressed that the decision on which violations to charge Bittrex with in the administrative complaint is entirely within the office's discretion, ForkLog reported.
From October 2022 to March 2023, the Florida Office of Financial Regulation, in conjunction with regulators from other states, investigated the company.
On April 17, the OFR filed a complaint against Bittrex. On the same day, the U.S. Securities and Exchange Commission filed a lawsuit against Bittrex and Bittrex Global for regulatory violations.
In response, the cryptocurrency exchange filed a motion with the SEC to dismiss the lawsuit, as this financial body has no authority to regulate crypto companies.
Recall that Bittrex filed for bankruptcy in early May.
