SNEAK PEEK
- Bittrex Exchange has filed for Chapter 11 bankruptcy.
- Bittrex has an estimated $500M to $1B in assets and liabilities.
- Bittrex’s recent troubles highlight the regulatory challenges that companies in the crypto industry face.
In a shocking turn of events, Bittrex Exchange filed for Chapter 11 bankruptcy. This comes less than a month after the Securities and Exchange Commission (SEC) charged Bittrex and its CEO for operating an unregistered national securities exchange, broker, and clearing agency.
?BREAKING: @BittrexExchange has filed for Chapter 11 bankruptcy.
The move comes less than a month after the @SECGov charged Bittrex and its CEO for operating an unregistered national securities exchange, broker, and clearing agency.
— Eleanor Terrett (@EleanorTerrett) May 8, 2023
The list of cryptocurrency businesses that have shut down over the previous two years now includes Bittrex as the most recent entry. The exchange had a tough Q1 of 2023, which led to the retrenchment of 80 of its personnel. Despite announcing plans to shut down operations by the end of April, Bittrex Global CEO Oliver Linch committed to fighting the charges in court.
However, Bittrex may find it challenging to keep that promise given the ongoing bankruptcy proceedings. According to court documents released by Randall Reese of bankruptcy monitoring service Chapter 11 Dockets, Bittrex’s assets and liabilities are worth between $500 million and $1 billion. Furthermore, Bittrex Malta Ltd and Bittrex Malta Holdings Ltd, two other Bittrex subsidiaries, have also applied for bankruptcy relief in the US Bankruptcy Court for the District of Delaware.
The news will likely send shockwaves through the cryptocurrency community, and investors are advised to take caution. Bittrex was once a leading player in the crypto exchange market, but its recent troubles have highlighted the industry’s regulatory challenges. As crypto continues gaining mainstream attention, it is becoming increasingly clear that companies must navigate a complex web of laws and regulations to survive.
Several crypto entities, including FTX, Celsius, Voyager, and BlockFi, have filed for bankruptcy amid toughening regulatory action. NYDFS imposed a $1.2 million fine against bitFlyer USA for cybersecurity violations.
