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 is said to have more than 100,000 creditors and liabilities ranging from $500 million to $1 billion.
Bittrex’s bankruptcy filing reveals more than 100,000 creditors and $1 billion in liabilities
Bittrex Inc. It filed for Chapter 11 bankruptcy in Delaware on Monday, while its parent company, Bittrex Global, will continue to operate outside the United States. This development comes after the exchange announced its decision to close US operations in early April. By the middle of the month, the US Securities and Exchange Commission (SEC) sent a notice to the company.
On April 17, 2023, the Securities and Exchange Commission took action against the exchange by charging it fees for operating an unregistered exchange, clearing agency, and broker. The suit also rated OMG, ALGO, and dash as “unregistered securities”. Recently, Randall Reese from Chapter 11 Doc open That crypto platform has 100,000 creditors. To keep them informed, the company has enlisted the help of Omni Agent Solutions to provide regular updates via email and the website.
Bittrex Chapter 11 filing reveals assets and liabilities ranging from $500 million to $1 billion. In addition, two Bittrex Global subsidiaries, Bittrex Malta Holdings Ltd. and Bittrex Malta Ltd. , filing for bankruptcy protection. US customers who used the cryptocurrency exchange were instructed to withdraw their funds by the end of April. Currently, it remains unclear who the company’s largest creditors are and how long the case will last. In response to the situation, Bittrex Inc. , headquartered in Seattle, A statement was issued 6:30 p.m. (ET).
“Having previously announced that Bittrex, Inc. will cease all operations in the United States effective April 30, we have now made the decision to file for Chapter 11 bankruptcy in federal court in the state of Delaware,” Bittrex revealed. “This announcement does not affect Bittrex Global, which will continue operations as normal for its customers outside the US. For customers who have not withdrawn their funds from the platform before the end of April, your funds remain safe and secure, and the priority is to ensure that our customers are complete.”
What does the future hold for Bittrex Inc.? What do you think in light of the bankruptcy filing and the SEC lawsuit?
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