Bittrex Files for Chapter 11 Bankruptcy Following SEC Lawsuit

Bittrex, a US-based cryptocurrency exchange, has filed for Chapter 11 bankruptcy protection in Delaware after being sued by the US Securities and Exchange Commission (SEC) for failing to register with the regulator. The exchange reportedly has over 100,000 creditors and liabilities ranging from $500 million to $1 billion. Bittrex’s US-based entity filed for bankruptcy in the state of Delaware after seven years of operation. The company had previously announced that it would be ceasing all operations in the US effective April 30th

Bittrex’s Troubled Year

Bittrex’s US branch has had a rough year so far, laying off 80 people in February and announcing in March that it would end all operations by the end of April. These changes have not affected Bittrex Global, the non-US crypto exchange. Despite Bittrex’s impending exit from the US, the SEC sued it in mid-April on allegations it operated a national securities exchange, broker, and clearing agency. The SEC also sued former Bittrex CEO Bill Shihara and Bittrex Global. Bittrex Global CEO Oliver Linch said last month that the exchange intended to fight these charges in court, but a bankruptcy proceeding may make this more difficult

Bittrex’s Bankruptcy Filing

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 US Treasury Department’s Office of Foreign Assets Control (OFAC) is listed as the largest creditor in the bankruptcy filing, with a claim of $1.4 million. Bittrex revealed, “Having previously announced that Bittrex, Inc. would cease all operations in the US effective April 30, we have now decided to file Chapter 11 bankruptcy in federal court in Delaware”. “This announcement does not affect Bittrex Global, which will continue to operate outside the US,” the company added

Bittrex’s Future

Bittrex’s bankruptcy filing reveals over 100,000 creditors and $1 billion in liabilities. The bankruptcy proceeding may make it more difficult for Bittrex to fight the charges in court. However, Bittrex Global will continue to operate outside the US, and the bankruptcy filing does not affect its operations. Bittrex is the latest crypto entity to file for bankruptcy, joining fellow exchange FTX and a host of lenders

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