Topic: Bittrex Files for Bankruptcy in Delaware (Read 108 times)

I am not skeptical but now I have started to think that US is really looking at down side of the crypto currencies throughout the continent. Now if someone is really trying to convince me that congress had meet up regarding the bitcoin and have plans for proper infra structure then I would simply laugh on that.

This is a 5th case in the US alone where giant exchangers, banks, and other type of financial institutes have been strictly monitored, dug out for unreal information, had worst tax evasion complaints and finally making them go bankrupt as the investors lose faith due to such allegations. A similar case is now popping up and its well known exchanger Bittrex.

In Bittrex case, it was none other than SEC who sued them and months after trial and testing Bittrex goes for bankruptcy filing.

Key Points:

• Liabilities: $500 to $1 billion
• Lay off 80 employees in february
• SEC sues Bittrex CEO and Global CEO
• Lack of regulatory clarity in the U.S.
• They still posses 100% customer funds

Slightly misleading. According to the bankruptcy filing, they indeed have $500 to $1 billion of liabilities, but also $500 to $1 billion in assets. So we don't really know what their net position is. It's fair to assume they're in net liabilities, otherwise probably wouldn't file for the bankruptcy.

Bittrex has been around for a long time, when I was just starting out in cryptocurrency it was one of the most popular exchanges in this industry field. What's happening now is actually like SEC pressure in the U.S. in my opinion.

     You don't understand the brains of the officials in the SEC of the U.S. It's all because they want to hold and control and obey it as they want. This exchange is also a waste.

Evan Hengel, the company's Co-Chief Restructuring Officer of Bittrex, said that customers would get a "100 percent like-kind cryptocurrency distribution" under its liquidation plan, enabling them to access the Bittrex platform and withdraw their crypto.

Although they are global, they are based in US so Bittrex couldn't last a lawsuit that will most more than their worth. They used to be big before 2017 but suddenly when Binance came, they were taken over. 

Bittrex has been around for a long time, when I was just starting out in cryptocurrency it was one of the most popular exchanges in this industry field. What's happening now is actually like SEC pressure in the U.S. in my opinion.

     You don't understand the brains of the officials in the SEC of the U.S. It's all because they want to hold and control and obey it as they want. This exchange is also a waste.

Bittrex already announced its intention to exit the U.S., but also faces an SEC enforcement action.

Crypto exchange Bittrex has filed for bankruptcy in the U.S. state of Delaware on Monday, months after announcing it would wind down operations in the country and weeks after being sued by the Securities and Exchange Commission (SEC).
The exchange believes it has more than 100,000 creditors, with estimated liabilities and assets both within the $500 million to $1 billion range, according to a court filing shared by Randall Reese of Chapter 11 Dockets, a bankruptcy tracker.
Bittrex's U.S. branch has had a rough 2023 so far, laying off 80 people in February and announcing in March that it would end all operations by the end of April. These changes have not affected Bittrex Global, the non-U.S. crypto exchange.

Despite Bittrex's impending exit from the U.S., the SEC sued it in mid-April on allegations it operated a national securities exchange, broker and clearing agency. The SEC also sued former Bittrex CEO Bill Shihara and Bittrex Global. Bittrex Global CEO Oliver Linch said last month that the exchange intended to fight these charges in court, but a bankruptcy proceeding may make this more difficult.
Bittrex is the latest crypto entity to file for bankruptcy, joining fellow exchange FTX and a host of lenders like Celsius, Voyager and BlockFi.
In filings made at the Delaware Court, Evan Hengel, the company's Co-Chief Restructuring Officer of Bittrex, said that customers would get a "100 percent like-kind cryptocurrency distribution" under its liquidation plan, enabling them to access the Bittrex platform and withdraw their crypto.
The company "faced an untenable regulatory and economic environment" given "the lack of regulatory clarity in the U.S. [which] created a substantial negative economic impact on the digital asset industry and resulted in overlapping regulatory burdens and soaring regulatory costs," Hengel said.

Richie Lai, co-founder and Chief Executive Officer of the company, tweeted that the bankruptcy filing was the "cleanest way to bury the baby," but that Bittrex "still have 100% of all customer funds."