Bittrex Chapter 11 Bankruptcy – Good morning to readers who are learning how to send and receive payments on the Lightning Network. Good evening to users of the WhiteBIT exchange who can withdraw crypto using any Unstoppable Web3 domain. And of course, good night to people who are definitely concerned about the issue that Binance Shuffles Billions of Bitcoin and rushes to reassure customers.
But it’s actually not a good morning, evening, and night for the Bittrex exchange.
Opening the Coingecko today, you just can’t even find the articles about trading strategies you needed or the most promising altcoins this week for updating your crypto portfolio. You faced the hundreds of headlines, “American Crypto Exchange Bittrex Files for Chapter 11 Bankruptcy”.
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Bittrex Chapter 11 Bankruptcy full story
On Monday, Bittrex Inc. filed for Chapter 11 bankruptcy in Delaware, although its parent company Bittrex Global will carry on business outside the country. This development happened after the exchange declared at the beginning of April that it was closing U.S. operations. The U.S. Securities and Exchange Commission (SEC) delivered the business a Wells notice by the middle of the month.
On April 17, 2023, the SEC acted against the exchange by charging it for operating an unregistered exchange, broker, and clearing agency. OMG, ALGO and DASH were categorized in the case as “unregistered securities.”
Recently, Chapter 11 Dockets’ Randall Reese disclosed that the cryptocurrency platform has 100,000 creditors. The business has engaged the aid of Omni Agent Solutions to help with regular email and website updates to keep them informed.
The $500 million to $1 billion in assets and liabilities are listed in the Bittrex Chapter 11 filing. Bittrex Malta Holdings Ltd. and Bittrex Malta Ltd., two more subsidiaries of Bittrex Global, have also applied for bankruptcy protection.
Customers from the United States who used the cryptocurrency exchange were told to remove their money before the end of April. Who the company’s biggest creditors are and how long the litigation will run are still unknown at this time. Seattle-based Bittrex Inc. issued a statement at 6:30 p.m. (ET) in reaction to the situation.
“Having previously announced that Bittrex, Inc. would be ceasing all operations in the U.S. effective April 30th, we have now made the decision to file Chapter 11 bankruptcy in federal court in Delaware,” Bittrex disclosed. “This announcement does not impact Bittrex Global, which will continue operations as normal for its customers outside the U.S. For those customers who did not withdraw their funds from the platform prior to the end of April, your funds remain safe and secure, and our main priority is to ensure that our customers are made whole.”