Bittrex U.S. Files For Chapter 11, Bittrex Global To Continue Operations
Bittrex U.S. filed for bankruptcy protection in federal court in Delaware today but will continue to operate globally.
"Having previously announced that Bittrex, Inc. would be ceasing all operations in the U.S. effective April 30th, we have now made the decision to file Chapter 11 bankruptcy in federal court in Delaware."
"This announcement does not impact Bittrex Global, which will continue operations as normal for its customers outside the U.S," the company wrote.
The company shut down operations in the United States citing unclear regulatory requirements. The filing comes a month after the exchange was sued by the Securities and Exchange Commission (SEC) for operating an unregistered exchange, broker, and clearing agency.
"The company said it had assets and liabilities each estimated to be worth between $500 million and $1 billion, and more than 100,000 creditors in a court filing," per The Block.
The number one creditor in Bittrex's Chapter 11 filing is the Office of Foreign Asset Control (OFAC) department, with whom the company agreed to pay $25m as a settlement for violating anti-money laundering rules and the other U.S. sanction programs.
Bittrex has been operating in the United States since 2014, and at one point was one of the largest exchanges in the country.