Bittrex crypto exchange has revealed that they have filed for bankruptcy, and the Treasury’s Office of Foreign Assets Control is its largest creditor.
Bittrex to instigate more pain in the crypto space?
2022 was one of the hardest years for the crypto space as several companies went down, dragging the whole market with them. Some, like FTX and Terra ecosystems, brought fear to the crypto space due to huge instances of fraud being unearthed.
Other major organizations like Genesis, Celsius and BlockFi went down in the same year. Now, one more organization, Bittrex, has gone down. The exchange was under probe by the Securities and Exchanges Commission, which led to its charging in April because of running an unregistered securities exchange.
Bittrex went ahead to cease operations towards the end of April with plans to end its US-based platform’s presence in the market. However, it said that the bankruptcy proceedings in the US would not impact its international customers.
Its May 8 court filing shows that it was founded in 2014 and accrued 100K US-based creditors during its lifetime. It also stated that it has liabilities of between $500 million and $1 billion. Additionally, some US customers still have yet to withdraw their funds from the exchange.
Now that the bankruptcy proceedings have kickstarted via Yesterday’s filing, the US customers will have to wait longer before they can finally withdraw their funds. Keep watching FinTech Express for updates on finance and banking-related news.