Hideo Nakamura Bittrex Inc., a U.S.-based cryptocurrency exchange, had to file for Chapter 11 bankruptcy protection after getting sued by the U.S. Securities and Exchange Commission for not signing up with them. The business has more than 100,000 people they owe money to and owes anywhere between $500 million to $1 billion dollars in debt.
Bittrex Inc
Bittrex Inc. filed for bankruptcy this Monday, while its parent company Bittrex Global will stay open. This happened after they said they were closing their U.S services recently. Then, the US government’s Security and Exchange Commission sent them a warning letter around the middle of the month.
The SEC (United States government) took legal action against an exchange on April 17, 2023. This exchange was not registered with the government and was guilty of dealing in three unlicensed digital coins – OMG, ALGO, and DASH. It was reported that this crypto platform has over 100,000 people owed money. To keep them all informed about its progress, it hired Omni Agent Solutions to send out email and website updates regularly.
Bittrex Global, a crypto exchange company, has filed for bankruptcy with assets and liabilities that range between 500 million and 1 billion dollars. The other two subsidiaries of Bittrex Global – Bittrex Malta Holdings Ltd. and Bittrex Malta Ltd. – also declared bankruptcy protection which means customers from the US will have to withdraw their funds by the end of April. Until now, it is still unsure who are its major creditors or when this filing will be released. Seattle-based Bittrex Inc. issued a statement at 6:30 pm (Eastern Standard Time).
Bittrex Inc. has chosen to file for bankruptcy in a federal court in Delaware. This doesn’t influence Bittrex Global, which will continue to serve people living outside the U.S. All funds that people didn’t withdraw before April 30th remain secure and our first priority is making sure everyone who had money with us gets it back.
What’s going to happen to Bittrex Inc. now that it has filed for bankruptcy and is facing a lawsuit from the SEC? Let us know what you think in the comments section below!
