Breaking News: Bittrex Exchange Files For Chapter 11 Bankruptcy

Key Points:

• Bittrex Inc. has filed for bankruptcy in Delaware following allegations from the US Securities and Exchange Commission (SEC) that the crypto platform violated securities rules for years.
• Bittrex exchange listed assets and liabilities of up to $1 billion each in its Chapter 11 petition. Related entities Desolation Holdings LLC, Bittrex Malta Holdings Ltd. and Bittrex Malta Ltd. also entered bankruptcy, according to court papers.

Bittrex exchange goes bankrupt after SEC accusations; liabilities and assets are estimated at $500m to $1bn. SEC claims Bittrex generated $1.3bn in revenue and acted as a brokerage, exchange, and clearing agency without registering with the SEC.

Bittrex Inc. has filed for bankruptcy in Delaware following allegations from the US Securities and Exchange Commission (SEC) that the crypto platform violated securities rules for years.

The SEC accused Bittrex of breaking its rules from 2017 through 2022 while generating at least $1.3 billion in revenue. The SEC noted that Bittrex acted as a brokerage, exchange, and clearing agency at times but did not register with the regulator.

Bittrex listed assets and liabilities of up to $1 billion each in its Chapter 11 petition. According to court papers, related entities Desolation Holdings LLC, Bittrex Malta Holdings Ltd., and Bittrex Malta Ltd. also entered bankruptcy. Bittrex released a statement disputing the allegations.

Bittrex’s top creditor in its Chapter 11 bankruptcy is the Office of Foreign Asset Control U.S department, to which the exchange agreed to pay $25 million to settle charges of violating sanctions and AML regulations.

The bankruptcy filing marks a significant setback for Bittrex and its users. The platform had gained a reputation as one of the most reliable and secure exchanges in the crypto space. The development highlights the need for increased regulation and oversight in the industry to protect users from unscrupulous actors.

It also serves as a reminder that investors should exercise caution and conduct thorough due diligence before investing in any crypto-related project or platform.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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