Crypto Exchange Bittrex Enters Chapter 11 Bankruptcy Protection Following SEC Lawsuit

[ad_1]

Bittrex Inc., the US-based cryptocurrency exchange, has filed for Chapter 11 bankruptcy protection in Delaware after being sued by the US Securities and Exchange Commission for failing to not have registered with the regulator. The exchange is said to have over 100,000 creditors and liabilities ranging from $500 million to $1 billion.

Bittrex bankruptcy filing reveals over 100,000 creditors and $1 billion in liabilities

Bittrex Inc. filed for Chapter 11 bankruptcy in Delaware on Monday, while its parent company Bittrex Global will continue to operate outside the United States. The development comes after the exchange announced its decision to end US operations in early April. Mid-month, the U.S. Securities and Exchange Commission (SEC) sent the company a Wells notice.

On April 17, 2023, the SEC took action against the exchange accusing it of operating an unregistered exchange, clearing agency, and broker. The lawsuit also classified OMG, ALGO, and DASH as “unregistered securities.” Recently, Randall Reese of Chapter 11 Dockets revealed that the crypto platform has 100,000 creditors. To keep them informed, the company has engaged Omni Agent Solutions to provide regular updates via email and website.

The Bittrex Chapter 11 filing reveals assets and liabilities ranging from $500 million to $1 billion. Additionally, Bittrex Global’s two other subsidiaries, Bittrex Malta Holdings Ltd. and Bittrex Malta Ltd., have also filed for bankruptcy. US customers who have used the crypto exchange have been asked to withdraw their funds by the end of April. Currently, it is unclear who the company’s major creditors are and how long the case will last. In response to the situation, Seattle-based Bittrex Inc. issued a statement at 6:30 p.m. ET.

“Having previously announced that Bittrex, Inc. will cease all U.S. operations effective April 30, we have now made the decision to file for Chapter 11 bankruptcy in federal court in Delaware,” Bittrex revealed. “This announcement does not affect Bittrex Global, which will continue operations as normal for its clients outside the United States. For clients who have not withdrawn their funds from the platform by the end of April, your funds remain safe. and safe, and our main priority is to make sure our customers are cured.

Tags in this story bankruptcy protection, Bittrex Global, Bittrex Inc., Chapter 11 bankruptcy, creditors, Cryptocurrency exchange, liabilities, lawsuit, US operations, unregistered exchange, unregistered securities, withdrawal of funds

What do you think the future holds for Bittrex Inc. in light of this bankruptcy filing and SEC lawsuit? Share your thoughts on this topic in the comments section below.

Jamie Redman

Jamie Redman is the news manager for Bitcoin.com News and a fintech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He is passionate about Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written over 7,000 articles for Bitcoin.com News about disruptive protocols emerging today.

Image credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is provided for informational purposes only. This is not a direct offer or the solicitation of an offer to buy or sell, or a recommendation or endorsement of any product, service or company. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

More popular newsIn case you missed it

[ad_2]