Bittrex Global owners and former executives are suing the Bermuda Monetary Authority in the Supreme Court, seeking a review of the regulator's decision to take enforcement action against the exchange following its voluntary application for liquidation.

Separately, the court-appointed independent liquidator of Bittrex Global is challenging the constitutionality of the lack of an effective appeal framework in relation to the enforcement actions under Bermuda's Digital Asset Business Act.

Based on this development Bittrex Global owners and former executives released the following statement today:

"In November 2023, we announced that Bittrex Global would be ceasing operations. We then entered a four-month period of consultation with the BMA and a globally recognised firm to act as liquidators to develop a plan to ensure an orderly wind-down and the safe return of all claimed funds to former customers.

“Three business days after the court approved the liquidation plan and the appointment of the proposed independent liquidators, the BMA issued a warning notice to the company that it intended to take enforcement action.

"We have asked the court to review the decision of the BMA to bring enforcement action in these circumstances.

“Unfortunately, the Digital Asset Business Act does not afford us, as owners and former executives, the right to respond directly. Therefore, we have also had to file a constitutional claim in order to challenge the decision.

"Bittrex Global became one of the first companies regulated under Bermuda's flagship crypto regulation in 2020. Since then, we have worked closely with the BMA, providing them with business plans and other materials setting out in detail all our policies and procedures.

“Where the BMA made suggestions, for example as part of an annual on-site inspection, these were promptly implemented.

“It was extremely surprising to learn, mere days after choosing to liquidate the company and after months of consultation with the BMA about our plans, that the BMA intended to bring enforcement action in relation to those same policies and procedures it had known about and in many cases approved over the previous three years.

“It was further shocking to learn that they proposed to deviate significantly from their own official published guidance and issue a civil penalty over four times the maximum amount under that guidance.

"In a separate court filing, Bittrex Global, acting through the court-appointed independent liquidators, is challenging the constitutionality of DABA's lack of an effective appeal framework in relation to enforcement actions.

"The return of claimed assets to all Bittrex Global users is already in an advanced stage, under the direction of the independent liquidators and the supervision of the Supreme Court of Bermuda.

“To date, over 94 per cent of claimed funds have already been returned, and it is anticipated that all claimed funds will be returned in accordance with applicable law in the coming weeks.

“Bittrex Global owners and former executives have continued to assist in this process, and the return of claimed funds remains our overriding priority."

The company ceased trading in December 2023.