Bittrex Inc, headquartered in Seattle, has recently submitted a Chapter 11 bankruptcy application in Delaware, USA. However, the filing of Bittrex’s American entity will not impact the services provided by Bittrex Global. The latter will continue to serve the crypto exchange’s clients outside the United States with the same commitment and dedication.
Bittrex Inc has issued a press release reassuring its clients that their assets remain safe and secure on the platform. The exchange has confirmed that once the Bankruptcy Court approves the distribution of funds, all assets will be made available to customers. To facilitate the withdrawal process, the bankrupt exchange intends to request the court to activate customers’ accounts with assets on the exchange. Bittrex Inc is committed to ensuring a smooth and efficient process for its valued clients.
According to Richie Lai, the Co-founder, and CEO of Bittrex, all customer funds are still intact at 100%. However, there will be a claims process that will go through the bankruptcy courts. Lai believes this was the most efficient and transparent way to handle the situation.
Bittrex’s recent bankruptcy filing follows closely on the heels of a lawsuit filed by the U.S. Securities and Exchange Commission (SEC). The SEC accused the exchange of violating federal securities laws by operating as an unregistered national securities exchange, broker, and clearing agency. The charges were still filed despite the exchange’s decision to wind down its operations in the United States.
According to the bankruptcy petition submitted to the U.S Bankruptcy Court for the District of Delaware, Bittrex has disclosed assets and liabilities ranging from $500 million to $1 billion. Notably, the insolvent cryptocurrency exchange has almost $25 million in debt to the U.S. Department of Treasury’s Office of Foreign Assets Control (OFAC).
Ironically, Bittrex’s top non-insider creditor is none other than the Office of Foreign Assets Control (OFAC), with a debt of $24.28 million owed by the crypto exchange. This amount results from a settlement reached in October last year following allegations of multiple sanctions program violations and non-compliance with anti-money laundering (AML) requirements. Despite Bittrex Inc. and its affiliated entities filing for bankruptcy, Bittrex Global, the international entity, will continue to serve non-U.S. customers without interruption. Bittrex Global’s operations will remain unaffected by the bankruptcy filings.
