Bittrex Seeks $7 Million Loan - Bankrupt crypto exchange Bittrex has been approved to borrow $7 million USD worth of Bitcoin for its bankruptcy case.
Bittrex Seeks $7 Million Loan – Bankrupt crypto exchange Bittrex has been approved to borrow $7 million USD worth of Bitcoin for its bankruptcy case.
Reuters reported on May 10 that the crypto company’s request for borrowing over 250 BTC loan valued at $7M has been approved by A U.S. bankruptcy judge. Brendan Shannon, a United States Judge in a court hearing granted Bittrex approval to 250 BTC, an amount currently worth $7 million from its parent company.
Bittrex possible future loans
In addition to this, in a hearing coming up in June, Bittrex will also try to borrow 450 BTC. This size of Bitcoin will amount to $12.3 million using the current price of BTC. This means that Bittrex could get a total possible loan of over $19 million.
Bittrex had previously stated that it can afford to pay its debt to all its customers in crypto. However, the requested loans will certainly help the case go on without any issues.
The loan in Bitcoin was approved by Judge Shannon because the asset has features such as a low-interest rate with volatility protections. This would help Bittrex not pay an inflated amount when it hopes to repay. That way, Bittrex will not pay back more than 110% of the current value when it wants to repay. Bittrex was approved to receive the loan from its parent company, Aquila Holdings.
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Bittrex and the SEC
Bittrex is one of the crypto firms that has been targeted by the Security and Exchange Commission. The crypto exchange company had said on March 31 that it would cease its operation in the U.S. following crackdowns of the regulatory body.
Fast forward to April 17, the SEC charged Bittrex for operating an unregistered security exchange. On May 8, the crypto firm filed for bankruptcy in the United States while continuing its global operations.
Furthermore, the exchange said it has over 100,000 creditors and that it has assets and liabilities valued between $500 million and $1 billion.