Bittrex Files For Bankruptcy With Chapter Eleven
US crypto asset (virtual currency) exchange Bittrex filed for bankruptcy under Chapter 11 (Chapter 11) of the US Bankruptcy Code in the United States on the 8th. The global version of Bittrex will not be affected, and we will continue to provide services to customers outside the United States as usual.
Currently, customer funds remaining on Bittrex are safely stored, the exchange explained.
Ultimately, the bankruptcy court will decide how to claim these customer funds and how to distribute them to customers.
We will be working with the courts to make these accounts accessible as soon as possible so that users who meet the necessary regulatory requirements can withdraw their funds.
According to the documents filed with the Delaware Federal Bankruptcy Court this time, assets are estimated to be about 67.5 billion to 135.1 billion yen (500 million to 1 billion dollars), and the amount of liabilities is also estimated to be 500 million to 1 billion dollars. be done. Also, there are more than 100,000 creditors.
Besides Bittrex in the United States, two other entities, Bittrex Malta and Bittrex Malta Holdings, have also filed for bankruptcy. Bittrex said it will continue to provide additional information regarding the bankruptcy proceedings.
Chapter 11 of the U.S. Bankruptcy Code (Chapter 11)
A reconstruction-type bankruptcy legal system similar to the Civil Rehabilitation Law of Japan. The company will be restructured by reducing debts while continuing to operate. Debt collection will be suspended after the application, and the debtor will work on debt consolidation and formulate a reconstruction plan within 120 days in principle.
Bittrex was once one of the largest exchanges in the United States. At the beginning of 2018, spot trading volume accounted for nearly 23% of the major US dollar exchanges, according to data from The Block. By 2021, it had shrunk to less than 1%, and its share hadn’t recovered since.
Coinbase is currently the largest exchange with a share of 37%, followed by Kraken with a share of 17%.
Noticed to close U.S. operations
Bittrex and its former CEO, William Shihara, were just sued by the US Securities and Exchange Commission (SEC) in April.
The SEC alleges that it provided securities trading to U.S. investors without registering the business. It claims six stocks, including Algorand (ALGO), which was listed on Bittrex, are considered securities.
The SEC also sued “Bittrex Global,” the global version of Bittrex, alleging that it had to register as a business in the United States because it shared one order version with Bittrex.
In response, Bittrex claims that it does not provide securities services, criticizing the SEC for not giving any notice of securities law violations for more than five years. I was just showing my willingness to fight in court.
connection: U.S. SEC sues virtual currency exchange Bittrex, claiming securitization of 6 stocks
Also, on April 1, it announced that it would end its U.S. operations on April 30, citing regulatory uncertainty. It had a history of asking customers to withdraw all funds by the end of April.
connection: Cryptocurrency exchange Bittrex to close operations in the US