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bankruptcy protection, Bittrex Global, Bittrex Inc., Chapter 11 Bankruptcy, creditors, Cryptocurrency Exchange, debt, sec lawsuit, US operations, unregistered exchange, unregistered securities, withdrawal of funds
Crypto Exchange Bittrex Enters Chapter 11 Bankruptcy Protection After SEC Lawsuit – Bitcoin News
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 register with the regulator. The exchange reportedly has over 100,000 creditors and liabilities from $500 million to $1 billion.
Bittrex bankruptcy filing reveals over 100,000 creditors and $1 billion in debt
Bittrex Inc. filed for Chapter 11 bankruptcy in Delaware on Monday, while parent company Bittrex Global will continue to operate outside the United States. This development comes after the exchange announced its decision to end US operations in early April. In the middle of the month, the US Securities and Exchange Commission (SEC) sent the company a Wells notice.
On April 17, 2023, the SEC took action against the exchange by charging it with 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 enlisted the help of Omni Agent Solutions to provide regular email and website updates.
The Bittrex Chapter 11 filing reveals assets and liabilities ranging from $500 million to $1 billion. In addition, Bittrex Global has two other subsidiaries, Bittrex Malta Holdings Ltd. and Bittrex Malta Ltd., also filed for bankruptcy protection. US customers using the crypto exchange were asked to withdraw their funds by the end of April. For now, it is still unclear who the company’s biggest 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).
“After announcing that Bittrex, Inc. would cease all operations in the United States effective April 30, we have now made the decision to file for Chapter 11 bankruptcy in a Delaware federal court,” Bittrex disclosed. “This announcement does not affect Bittrex Global, which will continue to operate as normal for its customers outside the US. For those customers who did not withdraw their funds from the platform before the end of April, your funds remain safe and secure, and our top priority is to ensure that our customers become whole.”
What do you think the future holds for Bittrex Inc. in light of this bankruptcy filing and the SEC lawsuit? Share your thoughts on this topic in the comments section below.
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