Crypto News: Crypto Exchange Bittrex Files for Bankruptcy Protection Following SEC Lawsuit
Seattle-based cryptocurrency exchange, Bittrex, has filed for Chapter 11 bankruptcy protection after announcing plans to leave the United States. This comes in the wake of the company being sued by the U.S. Securities and Exchange Commission (SEC) for allegedly violating securities laws.
However, Bittrex Global, which serves non-U.S. customers, will remain unaffected by the bankruptcy filing. The company reassured its customers that their funds are secure and the bankruptcy court will decide how to disburse them to the customers.
According to a court filing, Bittrex has over 100,000 creditors with assets and liabilities ranging between $500,000 and $1 billion. Prior to the bankruptcy filing, Bittrex had announced that it would leave the U.S. by April 2023 due to the unfavorable regulatory environment.
The SEC subsequently sued the company and its former CEO, William Shihara, for running an unregistered securities exchange, broker, and clearing agency.
While the SEC’s allegations against Bittrex are yet to be proven, the company has vehemently denied the allegations and has pledged to defend itself against the regulator’s actions. Bittrex Global CEO, Oliver Linch, stated that there was no communication between the firm and the SEC before the lawsuit was filed.
The move by Bittrex to file for Chapter 11 bankruptcy puts it in the same category as other crypto firms such as FTX, Celsius, BlockFi, and Voyager, which have also filed similar cases in the past.
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