The Florida Office of Financial Regulation (OFR) accused Bittrex of violating state laws before the company filed for bankruptcy.
According to court documents, the platform commingled customer assets with operating capital and failed to meet obligations in the required amount.
The regulator's deputy legal director has said:
"Deciding which of those violations to charge or not charge in our Administrative Complaint falls squarely within the OFR’s administrative discretion."
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The OFR worked from October 2022 to March 2023 with agencies in other states to investigate the crypto trading platform.
The Florida Financial Regulatory Authority filed a complaint against the exchange last April 17. On the same day, the US Securities and Exchange Commission (SEC) filed a complaint against Bittrex and Bittrex Global regarding violations of law.
Shortly thereafter, the company filed a motion to dismiss the SEC litigation, asserting that the agency does not have the authority to regulate cryptos.