- 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 violations.
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 has emerged during the bankruptcy proceedings in a submit made in the United States Bankruptcy Court for the District of Delaware on May 7.
According to Bittrex rack:
“While the bankruptcy court will ultimately decide how these funds can be claimed by and distributed to our clients, we intend to ask the court to activate those accounts as soon as possible so that clients who meet the necessary legal requirements can will be able to pull them back.”
The bankruptcy affects the Seattle-based entity Bittrex, Inc, as well as two Malta-based Bittrex companies and a related entity, Desolation Holdings LLC. However, the petition did not concern Bittrex Global GmbH, a global exchange based in Liechtenstein.
Bittrex is also facing SEC action
In April, the Securities and Exchange Commission (SEC) charged the company and its co-founder and former CEO, William Shihara, with securities violations.
According to the SEC, Bittrex, Inc. and Bittrex Global an unregistered stock exchange. The exchange was too charged with Bank Secrecy Act violations by the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) and the Financial Crimes Enforcement Network (FinCEN) in October, and agreed to pay approximately $29 million in a settlement.
Just last month, Oliver Linch, CEO of Bittrex Global, stated that the exchange expected to challenge the claims in court. However, bankruptcy proceedings can complicate this.
The SEC’s enforcement proceedings, as well as Bittrex’s recent bankruptcy filing, are coming after the company mention in March that it will cease operations in the United States by April 30, citing ongoing regulatory uncertainties in the country.
The exchange is in February dismissed 83 staff members, citing the downturn in the crypto market caused by the collapse and bankruptcy of other crypto companies.
Bittrex is the latest in a string of other cryptocurrency exchanges and lending platforms that have recently filed for Chapter 11 bankruptcy protection, including FTX, BlockFi, Celsius, and Voyager Digital.
