Crypto exchange Bittrex files for bankruptcy

Crypto exchange Bittrex was accused by the US Securities and Exchange Commision (SEC) that it was operating an unregistered securities exchange. Just recently, the exchange has formally filed for bankruptcy protection. 

Seattle-based Bittrex stopped operating in the United States on April 30 and stated that Bittrex Global, which services clients outside of the United States, is not affected by the bankruptcy case. This is because the business operations for non-U.S. clients are all based in  Liechtenstein.

According to the bankruptcy petition filed in a Wilmington, Delaware court, Bittrex's assets and liabilities were worth around $500 million and $1 billion.

With that, Gamdom players who have a knack of playing Bitcoin casino games who also happen to have accounts with Bittrex might have to spend some time to learn how they can retrieve their assets from the said exchange.

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What it means for account holders 

The Bankruptcy Court gets to determine which of the funds can be claimed and distributed to customers. Despite that, the company has stated its intentions to activate the affected accounts as soon as possible so that  account holders can meet any required regulatory requirements to withdraw their funds. Customers who weren’t able to withdraw their cryptocurrency from the platform were reassured by the company that their funds are safe and secure while they are yet to be moved to another crypto wallet. 

Bittrex has also retained their partnership with Omni Agent Solutions to send their clients with emails and site updates. The company also encourages those who were affected to check the updates, including those from the bankruptcy court that are yet to be posted on the site. 

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The accusations 

The SEC filed a lawsuit against Bittrex in federal court, alleging that the exchange violates the regulator’s rules from 2017 through 2022 while earning at least $1.3 billion in revenue. The SEC claimed Bittrex occasionally operated as a brokerage, exchange, and a clearing agency but failed to file any required paperwork. Bittrex refuted these claims. 

The said accusations can be considered the latest legal barriers for Bittrex. The company has also listed US Treasury's Office of Foreign Assets Control as its biggest unsecured creditor.  This is because the company owes $24 million from a previous settlement for failing to stop users from Iran, Cuba, and other sanctioned countries from accessing its platform.

Aside from Bittrex, the SEC also sued Bittrex Global and former Bittrex CEO Bill Shihara. In line with this, current CEO of Bittrex Global Oliver Linch said that the exchange planned to challenge these allegations in court, but that a bankruptcy filing might make this more challenging.

True enough, Bittrex has filed for bankruptcy, joining FTX and other lenders like Celsius, Voyager, and BlockFi.

Company statement 

In the released statement, Bittrex said, ‘Our main priority is to ensure that our customers are made whole. We are committed to working through the bankruptcy process in a way that is transparent and compliant with all applicable laws and regulations. We apologize for any inconvenience this may cause and appreciate your patience during this time’. 

Have a great crypto playing experience at Gamdom 
 

Words: Kyra Jimenez