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Crypto Exchange Bittrex Enters Chapter 11 Bankruptcy Protection Following SEC Lawsuit

Press Releases Crypto News Bitcoin News Crypto Exchange Bittrex Enters Chapter 11 Bankruptcy Protection Following SEC Lawsuit

Bittrex Inc., the U.S.-based cryptocurrency exchange, has filed for Chapter 11 bankruptcy protection in Delaware after being sued by the U.S. Securities and Exchange Commission for failing to register with the regulator. The exchange reportedly has over 100,000 creditors and liabilities ranging from $500 million to $1 billion.

Bittrex Bankruptcy Filing Reveals Over 100,000 Creditors and $1 Billion in Liabilities

Bittrex Inc. filed for Chapter 11 bankruptcy in Delaware on Monday, while its parent company Bittrex Global will continue to operate outside the United States. This development comes after the exchange announced its decision to sunset U.S. operations in early April. By mid-month, the U.S. Securities and Exchange Commission (SEC) sent the company a Wells notice.

On April 17, 2023, the SEC took action against the exchange by charging it for operating an unregistered exchange, clearing agency, and broker. The lawsuit also classified OMG, ALGO, and DASH as “unregistered securities.” Recently, Randall Reese from Chapter 11 Dockets revealed that the crypto platform has 100,000 creditors. To keep them informed, the company has enlisted the help of Omni Agent Solutions to provide regular email and website updates.

The Bittrex Chapter 11 filing reveals assets and liabilities ranging from $500 million to $1 billion. Additionally, Bittrex Global’s two other subsidiaries, Bittrex Malta Holdings Ltd. and Bittrex Malta Ltd., have also filed for bankruptcy protection. U.S. customers who used the crypto exchange were instructed to withdraw their funds by the end of April. Currently, it remains unclear who the company’s largest creditors are and how long th

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Author: Jamie Redman

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