Bittrex Files for Bankruptcy After SEC Fees

Bittrex Files for Bankruptcy After SEC Fees


Bittrexa popular cryptocurrency trading platform, has filed for Chapter 11 bankruptcy protection in the District of Delaware, court filings dated May 8.

What happened: The company estimates that it has more than 100,000 creditors with assets ranging from $500 million to $1 billion and liabilities in the same range.

Included in the bankruptcy is the Seattle-based Bittrex, Inc company, two Bittrex companies in Malta, and the Desolation Holdings LLC affiliate. But Bittrex Global GmbH, which is behind the exchange and is based in Liechtenstein, was not included in the filing.

See more: Is Bitcoin a Good Investment?

Why it matters: This step comes after the Securities and Exchange Commission or SEC charged the company and its co-founder and former CEO William Shihara for securities violations in April.

The SEC claimed that Bittrex, Inc and Bittrex Global operated an unregistered securities exchange. Additionally, last year the exchange was indicted by the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) and the Financial Crimes Enforcement Network (FinCEN) for violating banking secrecy laws and agreed to a $29 million settlement.

Bittrex owes OFAC $24.2 million, with the US agency being the largest creditor in the bankruptcy. A crypto wallet with a claim of $14.5 million is next in line, with FinCEN also listed as a top 50 creditor with a claim of $3.5 million.

Bittrex’s bankruptcy is the latest addition to this growing list of companies in the crypto industry facing financial difficulties.

Bittrex is a crypto exchange that offers trading in cryptocurrencies such as e.g Bitcoin BTC/USD And ether ETH/USD.

Price promotion: At the time of writing, BTC traded at $27,659, down 2.03% in the last 24 hours, according to Benzinga Pro.

Continue reading: Bitcoin, Ethereum, Dogecoin Plunge Amid Binance Traffic Jam Chaos: Analyst Bearish on ETH, Predicts Drop Below $1.7K


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