Seattle-based cryptocurrency exchange Bittrex is winding down its U.S. operations.
The company announced the decision Friday, and its U.S. operations will officially close April 30. Bittrex in February disclosed in a Worker Adjustment and Retraining Notification the company was laying off 83 employees.
“As a direct result of continued regulatory uncertainty and a lack of interest from U.S. regulators regarding sensible policies that will foster innovation and enhance the American economy, Bittrex U.S. has made the difficult decision to wind down," Bittrex co-founder and CEO Richie Lai said in a release. "While policymakers and regulators in jurisdictions around the world work with digital asset exchanges on shaping the future of the global economy, their U.S. counterparts are seemingly committed to extinguishing the industry and sending it overseas."
Bittrex didn't say how many employees would be laid off due to the closure or if the company will still have a local presence after winding down U.S. operations. The company has about 300 employees listed on LinkedIn.
Bittrex, founded in 2014, allows consumers to buy and sell cryptocurrencies like Bitcoin and Ethereum. Bittrex also allows consumers to trade on a mobile device. Lai founded the company with Bill Shihara and Rami Kawach, all of whom were cybersecurity engineers at Amazon prior to founding Bittrex.
The last full day for customers to withdraw cryptocurrency on Bittrex is April 29. The trading deadline is April 14. Bittrex will continue operating Bittrex Global, which serves non-U.S. customers. Bittrex Global is regulated in Bermuda and Liechtenstein.
The company's February layoff disclosure said it would begin shedding the 83 jobs this month. It also noted the layoffs affect Bellevue employees, though Bittrex lists Seattle as its headquarters. A Bittrex spokesperson at the time said in a statement the company doesn't discuss employee locations for security reasons but "we still possess robust staffing that will undoubtedly permit us to meet our business goals."
The crypto industry has struggled as of late, the most notable example being FTX, the crypto exchange once valued at $32 billion that filed for bankruptcy in November. Crypto tax startup TaxBit, which has dual headquarters in Seattle and Salt Lake City, in December confirmed it was trimming its headcount by 15%. In January, the crypto exchange Crypto.com said it was laying off about 20% of its headcount, adding to layoffs from July.
Crypto leaders, meanwhile, have criticized the U.S. government for lack of clarity and the Securities and Exchange Commission for an onslaught of legal disputes. SEC Chair Gary Gensler, however, recently defended the agency in an opinion piece for The Hill.
"Crypto entrepreneurs might claim, in their own marketing materials, that they’re transparent and regulated. But make no mistake: Very few, if any, are actually registered with the SEC and fully compliant with the federal securities laws," Gensler wrote. "The lack of compliance puts investors’ hard-earned assets at risk. Investors lack fundamental disclosures about the crypto assets themselves and the firms who execute their trades and custody their assets."
