Digital Assets: Crypto Exchange Bittrex Files For Bankruptcy

May 9, 2023 | Digital Assets

Bittrex shut its US operations after the SEC accused it of having flouted securities rules for years.

Bittrex, a Seattle-based cryptocurrency exchange accused by the SEC of operating an unregistered securities exchange, has filed for bankruptcy protection in Delaware court. Though Bittrex closed down operations in the US on April 30, its non-US operations in Liechtenstein will not be affected.

Bittrex’s assets and liabilities were reported to be between $500 million and $1 billion, and it intends to apply to the bankruptcy court for a limited reopening of customer accounts to distribute remaining US customers’ assets back to them. (Reuters)

According to Bloomberg, the SEC charged that Bittrex generated revenue of at least $1.3 billion between 2017 and 2022, during which time it allegedly violated the regulator’s rules by acting as a brokerage, exchange, and clearing agency without registering with the SEC.

Despite denying the accusations made by the SEC, Bittrex had previously consented to pay a $29 million fine for allegedly violating anti-money laundering law and sanctions on specific countries.

Bittrex’s largest unsecured creditor is the Treasury Department’s Office of Foreign Asset Control, owed over $24 million. However, there are 16 unnamed customers with at least $1 million in their accounts, with one having as much as $14.6 million.

Related Story:  (More) Crypto Contagion – BlockFi Is Insolvent

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