Bittrex Files for Bankruptcy
May 8, 2023
Crypto & Blockchain
After announcing plans to wind down operations in the United States and being sued by the Securities and Exchange Commission (SEC), Bittrex, a cryptocurrency exchange, filed for bankruptcy in the state of Delaware on Monday.
According to court documents, Bittrex filed for Chapter 11 bankruptcy and reported assets and liabilities of up to $1 billion each. Additionally, related entities such as Bittrex Malta Holdings Ltd., Bittrex Malta Ltd., and Desolation Holdings LLC have also entered into bankruptcy.
In 2023, Bittrex's US division encountered a series of setbacks, including laying off 80 employees in February and declaring its intention to terminate all operations by the end of April in March. However, these developments have not impacted Bittrex Global, the exchange's non-US branch.
Although it was the company's plan to leave the US, the SEC sued Bittrex and former CEO Bill Shihara in mid-April, alleging that it functioned as a national securities exchange, broker, and clearing agency. The SEC also sued Bittrex Global. Last month, Bittrex Global CEO Oliver Linch stated that the company aimed to contest these claims in court, but the bankruptcy proceedings may pose a challenge to this effort.
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