Cryptocurrency exchange Bittrex announced on May 8 that its US establishment had gone bankrupt. The company said it has decided to file for chapter 11 bankruptcy in federal court in Delaware. Bittrex Inc. is solely responsible for this decision. indicated that it had an impact on his company. That said, its global platform Bittrex Global will continue to serve customers outside of the US. The company’s filing for bankruptcy shows that the firm has between $500 million and $1 billion in assets and between $500 million and $1 billion in liabilities. The documents also show that the firm has more than 100,000 creditors. Here are the details…
Bankruptcy filing from cryptocurrency exchange Bittrex
Bittrex, Inc., one of the largest cryptocurrency exchanges in the United States. He announced that he would file for chapter 11 bankruptcy in federal court in Delaware. This decision comes after the company previously announced that it will cease all operations in the US from April 30. The announcement of the bankruptcy filing has raised concerns among Bittrex customers who still have money on the platform. However, the company has stated to its users that their funds are safe and secure. He assured that their main priority is to win over all of their customers.
Yes, we filed chap 11. Yes, we still have 100% of all customer funds. Yes, there will be a claims process through the bankruptcy courts. This was the cleanest way to bury the baby – RIP @BittrexExchange https://t.co/BkhtVppln3
— Richie Lai (@richiela) May 8, 2023
The bankruptcy court will ultimately decide how these funds can be claimed and distributed to customers. Bittrex plans to ask the court to activate these accounts as soon as possible so customers who meet the required legal requirements can withdraw their funds. They state that this announcement does not affect Bittrex Global, which will continue to operate as normal for its non-US customers.
Bittrex had a troubled start to 2023
As we reported as Kriptokoin.com, the US branch of Bittrex laid off 80 people in February. He then announced in March that he would cease all activities by the end of April. So, it has had a tough 2023 so far. These changes did not affect the non-US crypto exchange Bittrex Global. Despite Bittrex’s exit from the US, the SEC scrutinized Bittrex in mid-April. SEC to the stock market; sued for allegedly operating a national stock exchange, broker, and trading institution.
The SEC has also sued former Bittrex CEO Bill Shihara and Bittrex Global. Bittrex Global CEO Oliver Linch said last month that the exchange aims to fight these charges in court, but a bankruptcy case could make that more difficult. Bittrex’s filing for bankruptcy has added to the bankruptcy of cryptocurrency exchanges like FTX and credit companies like Celsius, Voyager and BlockFi in the past year.
What will happen now?
The news of Bittrex’s filing for bankruptcy created shock waves in the cryptocurrency community. The stock market saw a very low trading volume of $ 5.6 million on May 8. However, it’s important to remember that the company’s decision to file for bankruptcy does not necessarily mean the end of Bittrex. Bankruptcy can sometimes provide a company with the opportunity to restructure its operations and emerge stronger than before. For now, Bittrex customers are advised to keep a close eye on the company’s website and follow updates from the bankruptcy court.
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