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- Bittrex, a cryptocurrency trading platform, has filed for Chapter 11 bankruptcy in the District of Delaware.
- In April, the SEC charged the company and its co-founder and former CEO, William Shihara, with securities breaches.
Bittrex, a cryptocurrency trading platform, has filed for Chapter 11 bankruptcy in the District of Delaware.
Bittrex has more than 100,000 creditors, $500 million to $1 billion in assets, and $500 million to $1 billion in liabilities. This information emerged during the bankruptcy proceedings at a filing made in the United States Bankruptcy Court for the District of Delaware on May 7.
According to Bittrex’s statement:
“While the Bankruptcy Court will ultimately decide the method by which those funds can be claimed by and distributed to our customers, we intend to ask the courts to activate the accounts as soon as possible so that customers who meet the necessary regulatory requirements will be able to do so. attracted them.”
The bankruptcy affects the Seattle-based entity Bittrex, Inc, as well as two Bittrex businesses in Malta and a related entity, Desolation Holdings LLC. However, the petition does not include Bittrex Global GmbH, a Liechtenstein-based global exchange.
Bittrex is facing SEC action as well
In April, the Securities and Exchange Commission (SEC) charged the company and its co-founder and former CEO, William Shihara, with securities breaches.
According to the SEC, Bittrex, Inc. and Bittrex Global run an unlisted stock exchange. The exchange was also charged with breaches of the Bank Secrecy Act by the US Department of the Treasury’s Office of Foreign Assets Control (OFAC) and the Financial Crimes Enforcement Network (FinCEN) in October, and agreed to pay approximately $29 million in settlements.
Just last month Bittrex Global CEO Oliver Linch stated that the exchange expected to fight the claims in court. However, bankruptcy procedures can make this more difficult.
The SEC enforcement proceedings, as well as Bittrex’s recent bankruptcy filing, came after the company stated in March that it would cease operations in the United States on April 30, citing persistent regulatory uncertainty in the country.
In February, the exchange laid off 83 staff members, citing a downturn in the crypto market that was sparked by the collapse and bankruptcy of other crypto companies.
Bittrex is the latest in a series of other cryptocurrency exchanges and lending platforms that have recently filed for Chapter 11 bankruptcy protection, including FTX, BlockFi, Celsius, and Voyager Digital.
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