Bittrex Files for Bankruptcy in Delaware

[Flexystar]

I am not skeptical but now I have started to think that US is really looking at down side of the crypto currencies throughout the continent. Now if someone is really trying to convince me that congress had meet up regarding the bitcoin and have plans for proper infra structure then I would simply laugh on that.

This is a 5th case in the US alone where giant exchangers, banks, and other type of financial institutes have been strictly monitored, dug out for unreal information, had worst tax evasion complaints and finally making them go bankrupt as the investors lose faith due to such allegations. A similar case is now popping up and its well known exchanger Bittrex.

In Bittrex case, it was none other than SEC who sued them and months after trial and testing Bittrex goes for bankruptcy filing.

Key Points:

• Liabilities: $500 to $1 billion
• Lay off 80 employees in february
• SEC sues Bittrex CEO and Global CEO
• Lack of regulatory clarity in the U.S.
• They still posses 100% customer funds

Bittrex already announced its intention to exit the U.S., but also faces an SEC enforcement action.

Crypto exchange Bittrex has filed for bankruptcy in the U.S. state of Delaware on Monday, months after announcing it would wind down operations in the country and weeks after being sued by the Securities and Exchange Commission (SEC).
The exchange believes it has more than 100,000 creditors, with estimated liabilities and assets both within the $500 million to $1 billion range, according to a court filing shared by Randall Reese of Chapter 11 Dockets, a bankruptcy tracker.
Bittrex's U.S. branch has had a rough 2023 so far, laying off 80 people in February and announcing in March that it would end all operations by the end of April. These changes have not affected Bittrex Global, the non-U.S. crypto exchange.

Despite Bittrex's impending exit from the U.S., the SEC sued it in mid-April on allegations it operated a national securities exchange, broker and clearing agency. The SEC also sued former Bittrex CEO Bill Shihara and Bittrex Global. Bittrex Global CEO Oliver Linch said last month that the exchange intended to fight these charges in court, but a bankruptcy proceeding may make this more difficult.
Bittrex is the latest crypto entity to file for bankruptcy, joining fellow exchange FTX and a host of lenders like Celsius, Voyager and BlockFi.
In filings made at the Delaware Court, Evan Hengel, the company's Co-Chief Restructuring Officer of Bittrex, said that customers would get a "100 percent like-kind cryptocurrency distribution" under its liquidation plan, enabling them to access the Bittrex platform and withdraw their crypto.
The company "faced an untenable regulatory and economic environment" given "the lack of regulatory clarity in the U.S. [which] created a substantial negative economic impact on the digital asset industry and resulted in overlapping regulatory burdens and soaring regulatory costs," Hengel said.

Richie Lai, co-founder and Chief Executive Officer of the company, tweeted that the bankruptcy filing was the "cleanest way to bury the baby," but that Bittrex "still have 100% of all customer funds."

U.S. Crypto Exchange Bittrex Files for Bankruptcy in Delaware

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[pawel7777]

• Liabilities: $500 to $1 billion

Slightly misleading. According to the bankruptcy filing, they indeed have $500 to $1 billion of liabilities, but also $500 to $1 billion in assets. So we don't really know what their net position is. It's fair to assume they're in net liabilities, otherwise probably wouldn't file for the bankruptcy.

[bettercrypto]

Bittrex has been around for a long time, when I was just starting out in cryptocurrency it was one of the most popular exchanges in this industry field. What's happening now is actually like SEC pressure in the U.S. in my opinion.

     You don't understand the brains of the officials in the SEC of the U.S. It's all because they want to hold and control and obey it as they want. This exchange is also a waste.

[bittraffic]

Bittrex has been around for a long time, when I was just starting out in cryptocurrency it was one of the most popular exchanges in this industry field. What's happening now is actually like SEC pressure in the U.S. in my opinion.

     You don't understand the brains of the officials in the SEC of the U.S. It's all because they want to hold and control and obey it as they want. This exchange is also a waste.

Although they are global, they are based in US so Bittrex couldn't last a lawsuit that will most more than their worth. They used to be big before 2017 but suddenly when Binance came, they were taken over. 

This is the first exchange so far that I actually submitted KYC doc. If no one bails them, the government will do and there goes my KYC documents.

Meanwhile coinbase going offshore to escape SEC. This is one of the exchange that can fight back SEC.

[tabas]

Firstly, this thread should be on the Exchanges section.

Although they are global, they are based in US so Bittrex couldn't last a lawsuit that will most more than their worth. They used to be big before 2017 but suddenly when Binance came, they were taken over. 

I still remember that backwards for those years, that were the glory days of theirs. Thanks to these regulators that they really don't like to adopt these crypto companies and that speaks for the entirety of the whole crypto market. This SEC keeps on issuing and suing companies that they seem to think they're always right. Okay, just push away these companies out of your country and let other countries that are friendly to crypto and these companies enjoy their operations.

[Nwada001]

Evan Hengel, the company's Co-Chief Restructuring Officer of Bittrex, said that customers would get a "100 percent like-kind cryptocurrency distribution" under its liquidation plan, enabling them to access the Bittrex platform and withdraw their crypto.

This is the part that interests me the most about this entire bankruptcy and the SEC's lawsuit. Since their customers funds are said to be safe and they will be allowed to withdraw all their funds, there is little to be worried about here, and I believe everyone will be able to finish their withdrawal before the court proceeding starts and the case becomes official in court. If they eventually close down their exchange, what else will the SEC do rather than just hold a few of the employees and the already-listed CEO?

Another thing customers will be worried about here is their identity. The SEC might request access to the exchange data, which will validate every user's identity for those who have passed the KYC process of the exchange. No one knows what step the SEC will want to take next.

[AmoreJaz]

Bittrex has been around for a long time, when I was just starting out in cryptocurrency it was one of the most popular exchanges in this industry field. What's happening now is actually like SEC pressure in the U.S. in my opinion.

     You don't understand the brains of the officials in the SEC of the U.S. It's all because they want to hold and control and obey it as they want. This exchange is also a waste.

that is true, i guess most old timers here at one point used this exchange. stopped using this when they started the kyc reqmt. didn't know at that time that later on, most crypto exchanges will implement the mandatory kyc requirement.
anyway, another one bites the dust of this market. and there will be more exchanges that will follow their fate if they haven't change their business strategy.

[Dave1]

It's not just Bittrex that has been under the microscope, for sure everyone is aware of the SEC vs Coinbase that has been going on for months now and Coinbase is hinting that they might go out of the US as this based. They already have a Bermuda license to operate.

And I do agree, they are putting a lot of regulatory pressures on exchange that we believed that they are going full blown anti-crypto. So this Biden government might be the one in history that put down the faith of Americans in bitcoin or crypto in general.

[slapper]

Well, well, another crypto exchange meltdown! It's like a never-ending whirlwind – bankruptcy, SEC lawsuits – enough to cause vertigo!

But in all seriousness, what's the deal with crypto in the US? Regulating it into oblivion? Or are exchanges a den of deception? Hard to pinpoint, but crypto's state? A riddle wrapped in an enigma.

I'd argue that regulatory ambiguity in the US sows confusion. How can exchanges navigate murky waters without a map? Some might contend that the government dawdles to shield old-school finance.

One thing's clear – crypto's in a phase of metamorphosis. We must remain vigilant, enlightened, and secure our investments.

[Yogee]

• Liabilities: $500 to $1 billion

Slightly misleading. According to the bankruptcy filing, they indeed have $500 to $1 billion of liabilities, but also $500 to $1 billion in assets. So we don't really know what their net position is. It's fair to assume they're in net liabilities, otherwise probably wouldn't file for the bankruptcy.

That could be one reason. Another thing to consider here is that those assets may have been illiquid. When money becomes tight because they are hard to sell then it could also lead to bankruptcy. I think some companies still survives even though they're in net liabilities because they're assets are easily convertible to cash and that they can be reinvested in more liquid investments.

[Pity Token]

Is it too much or too little regulation that caused the bankruptcy? Too little means they can face liquidity problems, and unhappy customers. However, too much will discourage new customers to join. I think it's the latter, US regs are causing exchanges to leave in droves. Go to Hong Kong, they welcome crypto companies with open arms

[Fortify]

I am not skeptical but now I have started to think that US is really looking at down side of the crypto currencies throughout the continent. Now if someone is really trying to convince me that congress had meet up regarding the bitcoin and have plans for proper infra structure then I would simply laugh on that.

This is a 5th case in the US alone where giant exchangers, banks, and other type of financial institutes have been strictly monitored, dug out for unreal information, had worst tax evasion complaints and finally making them go bankrupt as the investors lose faith due to such allegations. A similar case is now popping up and its well known exchanger Bittrex.

In Bittrex case, it was none other than SEC who sued them and months after trial and testing Bittrex goes for bankruptcy filing.

Key Points:

• Liabilities: $500 to $1 billion
• Lay off 80 employees in february
• SEC sues Bittrex CEO and Global CEO
• Lack of regulatory clarity in the U.S.
• They still posses 100% customer funds

Congress meeting to come up with a plan for crypto infrastructure, eh? Crypto is meant to be decentralised, why would you want them involved in deciding the future direction of it? The less interaction they have in its future the better quite frankly. There is however a bit of naivete involved here as well, as if crypto related entities can do no wrong and that somehow any government clampdown is a bad thing. That's incorrect and it's good that regulators are casting an eye over these companies that are accepting hundreds of millions in deposits and taking action when necessary.