Bittrex, U.S. Crypto Exchange, Declares Bankruptcy in Delaware

Bittrex, the cryptocurrency exchange, filed for bankruptcy in the state of Delaware on Monday. This comes several months after the exchange announced its plans to gradually cease operations in the United States, and only a few weeks after it was sued by the Securities and Exchange Commission (SEC).

According to a court filing from Randall Reese of Chapter 11 Dockets, a bankruptcy tracker, the exchange claims to have over 100,000 creditors and estimated liabilities and assets in the range of $500 million to $1 billion.

Bittrex's U.S. division has faced significant challenges in 2023, including a workforce reduction of 80 employees in February and a subsequent announcement in March that it would cease all operations by the end of April. However, it's worth noting that these changes have not impacted Bittrex Global, which remains operational as a non-U.S. cryptocurrency exchange.

Despite Bittrex's imminent departure from the U.S. market, the company is still facing legal challenges from the Securities and Exchange Commission (SEC). In mid-April, the SEC filed a lawsuit against Bittrex, accusing it of operating as a national securities exchange, broker, and clearing agency. Former CEO Bill Shihara and Bittrex Global were also named in the lawsuit. Bittrex Global's CEO Oliver Linch has stated that the company plans to vigorously defend itself against the charges in court. However, the ongoing bankruptcy proceedings may pose additional hurdles for Bittrex in its legal battle with the SEC.

Bittrex has recently joined the ranks of cryptocurrency companies that have filed for bankruptcy, including other exchanges such as FTX, as well as lending platforms like Celsius, Voyager, and BlockFi.

Source Coindesk