Another ship sank in the turbulent waters as Bittrex Inc. and its affiliates filed for bankruptcy on Monday following the closure of its US operations in April due to regulatory actions.
Bittrex’s bankruptcy filing only affects its US operations, the company clarified, it occurred shortly after the SEC accused the crypto exchange of violating securities regulations over an extended period.
According to a recent statement by Bittrex, its global operations will continue as usual for non-US customers. In regards to US customers’ assets left on the platform, the company plans to request activation of those accounts in court to enable withdrawals for those who meet the necessary regulatory criteria.
Also Read: Bittrex Will No Longer Operate in US Due to “Regulatory Environment”
Bittrex’s bankruptcy case, with case number 23-10597, is taking place in the US Bankruptcy Court for the District of Delaware. Bittrex’s Chapter 11 filing revealed assets and liabilities of up to $1 billion each, while associated entities Desolation Holdings LLC, Bittrex Malta Holdings Ltd., and Bittrex Malta Ltd. also entered bankruptcy, according to court documents.
Last month, the SEC filed a lawsuit against Bittrex, claiming the crypto exchange violated regulations between 2017 and 2022 while earning a revenue of over $1.3 billion. According to the SEC, Bittrex acted as a brokerage, exchange, and clearing agency without proper registration.
Bittrex disputed the SEC’s allegations in a previous statement, adding to the exchange’s growing list of regulatory challenges. Bittrex’s largest unsecured creditor is the US Treasury’s Office of Foreign Assets Control, which the company owes $24 million from a previous settlement due to failing to prevent users in sanctioned countries from accessing its platform.
