Bittrex Inc. filed for Chapter 11 bankruptcy protection for its US-based operations on May 8. Three weeks ago, the Securities and Exchange Commission (SEC) charged it with operating an unregistered securities exchange. According to the document, Bittrex’s assets and liabilities were valued between $500 million and $1 billion. It also claimed to have over 100,000 creditors.
According to sources, the firm indicated that it was still holding crypto assets of US customers who did not withdraw funds by April 30. The funds are “safe and secure,” it claimed, adding that it intends to petition the court to restore customer accounts so that they can withdraw. The business also indicated that the bankruptcy case had no effect on its Liechtenstein-based offshore operations, Bittrex Global. However, two additional companies, Bittrex Malta Ltd. and Bittrex Malta Holdings Ltd., have also filed for bankruptcy in the United States.
“This announcement has no impact on Bittrex Global, which will continue operations as usual for its customers outside the United States,” a Bittrex representative emphasized. clients who did not withdraw their monies from the platform before the end of April, your assets are still safe and secure, and our top aim is to make our clients whole.”
On April 17, the SEC filed a complaint against Bittrex, alleging that the company and its management were marketing and selling unregistered securities. Bittrex refuted the claims, arguing that the assets it offered did not constitute securities. Because the United States Congress has yet to officially define crypto assets as securities, this is yet another example of the SEC using extrajudicial enforcement proceedings to circumvent the law.
Bittrex announced the closing of its US exchange in late March, amid federal regulators’ growing battle on cryptocurrency. Bittrex was fined $53 million in October for breaking anti-money laundering (AML) legislation.
Bittrex, founded in 2014, was formerly one of the major cryptocurrency exchanges in the United States. According to CoinGecko, it presently has a daily volume of roughly $7 million and supports 799 trade pairings. Today’s fall in cryptocurrency markets was 1.8%, bringing the total valuation to $1.18 trillion.
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