Crypto exchange Bittrex files for bankruptcy

Famous cryptocurrency exchange Bittrex filed an application for Chapter 11 bankruptcy protection in Delaware, USA.

Bittrex’s assets and liabilities range from $500 million to $1 billion, the lawsuit says. The number of creditors exceeds 100,000. Subsidiaries of Bittrex Malta Ltd. and Bittrex Malta Holdings Ltd. filed similar claims. At the same time, bankruptcy will not affect the work of the international platform Bittrex Global.

This decision was made by the company three weeks after the US Securities and Exchange Commission (SEC) accused it of promoting and selling unregistered securities. The SEC did not like trading in OMG, DASH, ALGO, TKN, NGC and IHT tokens.

In early April, Bittrex also announced that it would stop operating in the US. The reason was “regulatory uncertainty”. Customer funds from America were not affected, but had to be withdrawn by April 30th. In a filing today, Bittrex notified the court that it still holds the crypto assets of U.S. clients who did not withdraw their funds by April 30.

US user funds are safe, but Bittrex plans to ask the court to reopen customer accounts to allow them to withdraw their remaining funds.

“Following the announcement that Bittrex, Inc. will cease all U.S. operations effective April 30, we have decided to file for Chapter 11 bankruptcy. <...> Bittrex Global will continue to operate as usual outside of the US. For those clients who have not withdrawn assets from the platform by the end of April, we inform you that your funds remain safe, and for us now the priority is to return them in full, ”said a company representative.

Bittrex, founded in 2014, was once one of the largest crypto exchanges in the US. Currently, the volume of transactions on the platform is about $7 million.

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