Bittrex Inc., a US-based digital asset exchange, has filed a Chapter 11 bankruptcy petition in a federal court in Delaware. Notably, Bittrex explained that this bankruptcy declaration does not impact Bittrex Global; thus, it will keep providing its services to customers beyond the borders of the United States.
The decision follows Bittrex, Inc.’s announcement to cease all operations in the U.S. effective April 30th. Bittrex had previously said it would leave the U.S. owing to the country’s regulatory and economic environment which the cofounder referred to as being vague.
The Securities and Exchange Commissions in less than a month before the Bankruptcy filing charged the said exchange and its former CEO with running an unregistered exchange as well as a broker, and clearing agency.
Alongside Bittrex, Bittrex Malta Ltd. and Bittrex Malta Holdings Ltd. filed for bankruptcy protection in the U.S. Bankruptcy Court in the District of Delaware.
Bittrex assures that customers who are yet to withdraw their funds from the platform before the end of April would still have access to them as they are safe and secure. However, the Bankruptcy Court will ultimately decide the method by which those funds can be claimed and distributed to our customers, and they will receive information directly from the bankruptcy court,” Bittrex said.
The exchange added that they “intend to ask the court to activate those accounts as soon as possible so that customers meeting the necessary regulatory requirements will be able to withdraw them.”
Estimating the company’s assets, Bittrex stated in a filing that its assets and liabilities were valued between $500 million and $1 billion. The firm also noted that it has over 100,000 creditors.
Bittrex was ranked as one of the largest exchanges in the U.S., until its market share of nearly 23% collapsed to below 1% in 2021, and has yet to recover.
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