Bittrex had previously announced plans to leave the United States, but the company is also dealing with a legal action from the Securities and Exchange Commission (SEC).
Bittrex, a cryptocurrency exchange, has filed for bankruptcy in Delaware, USA, on Monday. This comes after the company’s earlier announcement about gradually closing down its operations in the country. Additionally, the Securities and Exchange Commission (SEC) recently filed a lawsuit against Bittrex.
According to a court filing shared by Randall Reese of Chapter 11 Dockets, a bankruptcy tracker, the exchange believes it owes money to over 100,000 people. The estimated amount of money owed and assets held by the exchange falls between $500 million and $1 billion.
Bittrex’s U.S. division has faced significant challenges in 2023. In February, the company laid off 80 employees, and in March, they announced their decision to completely shut down their operations by the end of April. However, it’s important to note that these changes do not impact Bittrex Global, the non-U.S. cryptocurrency exchange.
Even though Bittrex had already announced its plans to leave the U.S., the Securities and Exchange Commission (SEC) filed a lawsuit against the company in mid-April. The SEC claims that Bittrex operated as a national securities exchange, broker, and clearing agency. The lawsuit also includes former Bittrex CEO Bill Shihara and Bittrex Global. Bittrex Global CEO Oliver Linch stated last month that the exchange intended to contest these charges in court. However, the bankruptcy proceeding could potentially complicate their legal fight.
Bittrex has become the latest cryptocurrency company to file for bankruptcy. They join other entities in the crypto industry, such as FTX exchange, as well as lenders like Celsius, Voyager, and BlockFi, who have also taken the same step.
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