“Insight into Bittrex Bankruptcy: SEC Lawsuit and Safe-Customer Assets”

2023-05-09 11:10:25

Crypto exchange Bittrex recently filed for bankruptcy in the United States, months following shutting down operations in the country and weeks following being sued by the SEC.

The American branch of Bittrex has not exactly had a good year this year. During February, it had to get rid of 80 employees, and the following month it announced that it would cease operations for good by the end of April. And the SEC sued it in April, alleging that the company and its executives promoted and sold unregistered securities. Bittrex has denied all this, saying that the instruments it offers are not securities.

The regulator also charged former CEO Bill Shihara and Bittrex Global. Bittrex Global CEO Oliver Lynch has stated that they will fight the charges in court, but the bankruptcy proceedings may make it more difficult. It is important to mention that these moves did not affect Bittrex Global, the non-US crypto exchange.

Clients’ money is safe

On the other hand, there are still some American customers who have not withdrawn their digital assets from the crypto exchange. According to the company’s statement, these funds are safe. They also intend to petition the court to reopen the accounts of customers to access the Bittrex platform and withdraw their cryptocurrencies.

“This announcement does not affect Bittrex Global, which will continue to operate as usual for its customers outside the US. The assets of our users who did not withdraw their funds from the platform before the end of April are still safe. Our top priority right now is to fully compensate our customers.” – stated the company’s spokesperson.

A according to news the company had more than 100,000 creditors, with assets and liabilities valued at between $0.5 billion and $1 billion. Back in October, Bittrex was fined $53 million in the US for violating anti-money laundering laws. Founded in 2014, Bittrex was once one of the largest crypto exchanges in the United States. According to CoinGecko, it currently has a daily turnover of around $7 million and offers 799 trading pairs.

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