According to the submitted lawsuit, the company’s assets and liabilities range from $500 million to $1 billion, and the total number of users of the exchange is more than 100,000 people.
It should be noted that 2023 was not an easy year for the American branch of Bittrex. In February, 80 people were dismissed from the company’s staff, and in April the company stopped all operations.
Despite leaving the United States, the SEC filed a lawsuit against the crypto exchange. The regulator has accused Bittrex CEO Bill Shihara of running an unregistered securities exchange. Oliver Lynch, CEO of Bittrex Global, reacted to this situation and said that the company plans to challenge these charges, but the bankruptcy procedure may complicate the process.
Bittrex has become another cryptocurrency platform that has declared bankruptcy and joined the previously bankrupt FTX exchange and a host of crypto lenders such as Celsius, Voyager and BlockFi.
Evan Hengel, director of restructuring at Bittrex, said that the company faced an unacceptable regulatory and economic environment, and the lack of clarity in regulation had a negative impact on digital assets and led to a sharp increase in costs. The expert assures that all clients will receive a 100% refund of the cryptocurrency in accordance with the liquidation plan.
Bittrex also announced the presence of 16 clients who have more than $ 1 million in their account. The largest active account on the platform holds assets equivalent to $14.6 million. In the near future, representatives of Bittrex plan to apply to the court with a request for a limited re-opening of accounts.