Bittrex Inc. and its affiliated entities faced a significant setback on Monday as they filed for bankruptcy, following the closure of their US operations in late April due to increased regulatory scrutiny.
The company’s insolvency, though limited to its US operations, occurred less than a month after the US Securities and Exchange Commission accused the cryptocurrency platform of violating securities regulations over an extended period.
While Bittrex Global assured its customers outside the US that its operations would continue without disruption, the situation remains uncertain for users who failed to withdraw their assets prior to the shutdown. In an official statement, Bittrex expressed its intention to request the court’s intervention in reactivating those accounts promptly, allowing compliant customers to retrieve their funds.
In the Chapter 11 bankruptcy filing, Bittrex disclosed both its assets and liabilities, each amounting to a staggering $1 billion. Court documents further revealed that associated entities, namely Desolation Holdings LLC, Bittrex Malta Holdings Ltd., and Bittrex Malta Ltd., also found themselves entangled in the bankruptcy proceedings.
