• Bittrex Inc. filed for Chapter 11 bankruptcy protection in the U.S.
• The SEC had accused it of operating an unregistered securities exchange
• Bittrex Global, its Liechtenstein-based offshore operations, are not affected by the bankruptcy filing
Crypto Exchange Bittrex Files for US Bankruptcy Protection
Bittrex Inc., a crypto exchange, has filed for Chapter 11 bankruptcy protection in the United States after being accused by the Securities and Exchange Commission (SEC) of operating an unregistered securities exchange. The move came three weeks after the SEC made its allegations against Bittrex. According to its filing, assets and liabilities each estimated to be worth between $500 million and $1 billion were held by the firm. It also stated that there were over 100,000 creditors.
Funds Remain Safe and Secure
Bittrex Inc said funds held by U.S customers who did not withdraw them before April 30 remain „safe and secure“, adding that it intended to ask the court for a reopening of customer accounts to allow them to withdraw their funds if they wish.
Bittrex Global Not Impacted
The company clarified that its Liechtenstein-based offshore operations, Bittrex Global, were not affected by the bankruptcy filing in any way. However two other entities belonging to Bittrex, namely; Bittrex Malta Ltd., and Birttex Malta Holdings Ltd., had also filed for bankruptcy protection in America.
Moving Forward
Moving forward from this incident, Birttex is focusing on restoring customer confidence as well as working diligently with government agencies on both sides of the Atlantic to ensure compliance with all applicable laws & regulations are met going forward in order to provide a safe trading environment for users worldwide.
Conclusion
To conclude this article, it is important to note that while this filing affects only those customers based in U.S., it is still seen as another blow struck against crypto exchanges due to increased clampdown on cryptocurrency businesses across many countries including America itself which could potentially hamper its development moving forward into 2021 and beyond