Bittrex files for US bankruptcy; will not halt global operations
The firm recently announced plans to halt U.S. operations after facing SEC charges.
Bittrex announced the bankruptcy of its U.S. entity on May 8.
The company said that it has decided to file for Chapter 11 bankruptcy in federal court in Delaware. It said that this decision only affects Bittrex Inc. and that its global platform, Bittrex Global, will continue to serve non-U.S. customers.
The company’s bankruptcy filing suggests that the firm has between $500 million and $1 billion in assets and between $500 million and $1 billion in liabilities. The filing additionally indicates that the firm has more than 100,000 creditors.
The company also said that U.S. customers who did not withdraw their funds from the platform when it closed at the end of April will regain access to their funds through proceedings, and that those funds remain “safe and secure.”
The company previously received charges from the U.S. Securities and Exchange Commission on April 17. Those charges alleged that Bittrex and its co-founder Bill Shihara failed to register its exchange platform with the regulator.
Earlier, on March 31, Bittrex had stated that it would halt U.S. operations by the end of April but did not suggest a bankruptcy filing at that time.
The exchange saw a fairly low trading volume of $5.6 million on May 8.