Bittrex Files for Bankruptcy in Delaware
On Monday, Bittrex, a crypto exchange in US, filed for bankruptcy in Delaware, several months after announcing its plan to wind down operations in the US and weeks after the Securities and Exchange Commission (SEC) filed a lawsuit against the company.
According to court filings, Bittrex has over 100,000 creditors, with estimated liabilities and assets in the $500 million to $1 billion range.
Despite the rough year for Bittrex’s US branch, the non-US crypto exchange, Bittrex Global, is unaffected.
The SEC accused Bittrex of operating a national securities exchange, broker, and clearing agency. Bittrex Global intends to fight these charges in court, but the bankruptcy proceeding may make it more challenging.
Bittrex is the latest crypto entity to file for bankruptcy, joining other lenders such as Celsius, Voyager, and BlockFi. According to Evan Hengel, Bittrex’s Co-Chief Restructuring Officer, customers will receive a “100 percent like-kind cryptocurrency distribution” under the company’s liquidation plan.
The company cited the lack of regulatory clarity in the US and its negative economic impact on the digital asset industry as reasons for the bankruptcy filing.
Richie Lai, Bittrex’s co-founder and CEO, tweeted that the bankruptcy filing was the “cleanest way to bury the baby,” but that the company still has 100% of all customer funds.
About Bittrex
Bittrex is a worldwide digital currency exchange that provides a selection of more than 250 cryptocurrencies for buying, selling, and trading. The exchange was established in 2014 by Bill Shihara, Richie Lai, and Rami Kawach, all of whom are engineers, and is located in Seattle.
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