Bittrex files for Chapter 11 bankruptcy just weeks after SEC charges

Cryptocurrency trading platform Bittrex has actually filed for Chapter 11 personal bankruptcy security in the District of Delaware.In a May 8 filing in the United States Bankruptcy Court for the District of Delaware, Bittrex approximated it had more than 100,000 financial institutions, between $500 million and $1 billion in properties, and between $500 million and $1 billion in liabilities as part of personal bankruptcy proceedings.The bankruptcy covers its Seattle-based entity Bittrex, Inc, two Bittrex entities in Malta and an associated entity Desolation Holdings LLC. Bittrex Global GmbH, the Liechtenstein-based worldwide entity for exchange, was not included in the filing.The declaration followed the U.S. Securities and Exchange Commission (SEC) charging the business and its co-founder and former CEO William Shihara for securities violations in April.The SEC declared Bittrex, Inc and Bittrex Global operated an unregistered securities exchange. In October, the exchange also got charges relating to Bank Secrecy Act infractions from the U.S. Treasurys Office of Foreign Assets Control (OFAC) and the Financial Crimes Enforcement Network (FinCEN) and agreed to pay around $29 million in a settlement. OFAC is the biggest financial institution noted on Bittrexs insolvency filing, with the exchange reserving a $24.2 million claim for the Office. Its next largest creditor is a crypto wallet with a $14.5 million claim.FinCEN is also noted as a leading 50 creditor with a claim of $3.5 million, the SEC is listed with an undetermined amount of claims.OFAC takes the top creditor spot for Bittrex with claims of $24.2 million. Source: PACERThe SECs enforcement actions and its current personal bankruptcy filing comes as Bittrex revealed in March that it would unwind its U.S. operations by April 30 citing “continued regulatory unpredictability” in the country.Related: Tencent-backed Everledger collapses amid absence of financing: Report It has actually been a tough year for Bittrexs entity in the U.S. in 2023. The exchange likewise cut 83 employees in February citing the crypto market downtown triggered by the collapses and personal bankruptcies of other crypto firms.Bittrexs personal bankruptcy is the most recent in a line of other crypto exchange or lending platforms that have likewise just recently applied for Chapter 11 defense, inclduing FTX, BlockFi, Celsius and Voyager Digital.Cointelegraph gotten in touch with Bittrex Globals CEO Oliver Linch for comment but did not immediately get a response.Magazine: Crypto winter can take a toll on hodlers mental healthUpdate (May 8, 10:50 pm UTC): This article has actually been upgraded with extra information from the personal bankruptcy filing and additional background information.Additional reporting by Jesse Coghlan.

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