Bittrex US Files for Bankruptcy: What Investors Need to Know
• Bittrex cryptocurrency exchange has filed for Chapter 11 bankruptcy protection in the US.
• The filing comes a month after the US Securities and Exchange Commission (SEC) charged Bittrex for repeatedly breaking security regulations.
• The bankruptcy does not involve Liechtenstein-based global trading exchange firm Bittrex Global GmbH, and only applies to Bittrex US and its affiliates.
Bittrex Files for Bankruptcy
Bittrex cryptocurrency exchange has officially filed for Chapter 11 bankruptcy protection in the United States. This filing follows a lawsuit from the U.S Securities and Exchange Commission (SEC) which charged Bittrex for repeatedly breaching security regulations, generating at least $1.3 billion in revenue over several years.
Assets & Liabilities
The Bankruptcy filing submitted to the United States Bankruptcy Court for the District of Delaware reported that Bittrex has $500 million to $1 billion in assets, $500 to $1 billion in liabilities and more than 100,000 creditors.
Scope of Bankruptcy Filing
The bankruptcy does not involve Liechtenstein-based global trading exchange firm Bittrex Global GmbH, and only applies to Bittrex US and its affiliates. This means that users of other international exchanges operated by the company will not be affected by this filing.
SEC Lawsuit Against Bittrex
The SEC last month filed a lawsuit against Bittrex in Federal court alleging that they had violated securities regulations from 2017 through 2022 without having filed the necessary paperwork. They also classified three tokens as unregistered securities; these tokens were ALGO, OMG, and DASH respectively.
Withdrawal Request From Users
Days before the official announcement of bankruptcy filing, users were asked by Bittex US to withdraw their funds from their accounts. This was done as part of precautionary measures taken by them due to financial difficulties faced by them due possible consequences of SEC lawsuit against them