Bittrex Went Bankrupt – Why and How?
Cryptocurrency exchange, Bittrex, filed for Chapter 11 bankruptcy protection in the District of Delaware, US. It happened after the Securities and Exchange Commission (SEC) accused it of violating securities rules.
Bittrex listed assets and liabilities of as much as $1bn each in its Chapter 11 petition, with related entities Desolation Holdings, Bittrex Malta Holdings, and Bittrex Malta all entering bankruptcy. This company believes it has more than 100,000 creditors, with estimated liabilities and assets within the $500m to $1bn range. Bittrex’s US operations were closed at the end of April in response to regulatory action. Bittrex Global will continue operating as usual for customers outside the US.
Despite Bittrex’s impending exit from the US, it was still sued by the SEC in April, alongside former CEO Bill Shihara and Bittrex Global. This firm’s troubles with US regulators began in October 2022, when the exchange was charged with Bank Secrecy Act violations. They agreed to pay $29m to settle the charges from the Office of Foreign Assets Control and the Financial Crimes Enforcement Network. It was also accused of having flouted securities rules, and the SEC claimed Bittrex and Bittrex Global operated an unregistered securities exchange.
Evan Hengel, the company’s co-chief restructuring officer, said the firm faced “an untenable regulatory and economic environment” due to a “lack of regulatory clarity in the US [which] created a substantial negative economic impact on the digital asset industry and resulted in overlapping regulatory burdens and soaring regulatory costs.” Hengel added that customers would receive a “100% like-kind cryptocurrency distribution” under its liquidation plan, enabling them to access the company platform and withdraw their crypto. These events continue to shake the market, and what many ask is if it’s a cryptocurrency scam.
Bittrex is not the only cryptocurrency-related firm to file for bankruptcy recently, with FTX and lenders such as Celsius, Voyager, and BlockFi, among others, to have done so. Other companies have announced plans to close their US operations due to regulatory issues. With regulators seeking greater oversight of the cryptocurrency industry, it is possible that more firms will follow suit.
What to Do If You Have Money In Your Bittrex Account?
Unlike FTX, Bittrex wasn’t regulated as a securities trading provider in the US. It means you have to put faith in the company to reverse your money. Sometimes when brokers or exchanges shut down, they also disable account access. In case of any issues with the Bittrex login, it’s important to report it right away.
Many Bittrex reviews contain rumors about what will happen next. It’s important to stay vigilant and follow all the necessary legal steps.
We are here to help you with legal letters and guide you through the process of getting your money back in the proceedings. Additionally, we can help in case of various crypto scams and falling victim to fake exchanges. Share your story today, and let’s ensure you’re on the list of creditors!