- The bankruptcy does not affect the exchange’s global operations.
- Among the creditors is the US Treasury, with a claim of $24.2 million.
Bittrex, a crypto trading platform, has sought Chapter 11 bankruptcy protection in the District of Delaware.
Filed May 8 before the U.S. Bankruptcy Court for the District of Delaware, the exchange detailed that it had more than 100,000 creditors, between $500 million and $1 billion in assets, and between $500 million and $1 billion in liabilities.
Per the court documents, the bankruptcy covers Seattle-based Bittrex, Inc, two entities based in Malta, and an affiliated company Desolation Holdings LLC. Excluded from the proceedings is Bittrex Global gmbH, based in Liechtenstein, which services non-US clients.
”Having previously announced that Bittrex, Inc. would be ceasing all operations in the U.S. effective April 30, we have now decided to file Chapter 11 bankruptcy in federal court in Delaware. This announcement does not impact Bittrex Global, which will continue operations normally for its customers outside the U.S.,” Bittrex said in a press release shared on Monday.
Bittrex Goes Down With The U.S. Treasury As Its Largest Creditor
The U.S. Treasury’s Office of Foreign Assets Control (OFAC) is among the exchange’s listed creditors, with a $24.2 million claim. It is followed by a crypto wallet with $14.5 million. The Financial Crimes Enforcement Network (FinCEN) is also listed among the creditors, owed $3.5 million.
In March, Bittrex announced that it was closing down its U.S. operations, trading on April 14 and withdrawals on April 30. The company said that continuing operations in the U.S. could have been more economically viable in light of the current U.S. regulatory and economic environment.
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The Securities and Exchange Commission (SEC) charged the company and its CEO, William Shihara, for allegedly operating an unregistered national securities exchange, broker, and clearing agency.
