Bittrex US unexpectedly files for bankruptcy

Bittrex actually wanted to say goodbye to the USA at the end of April. Bittrex US is now filing for bankruptcy. Previously, there were repeated conflicts with the state authorities. The global arm of the crypto exchange is not affected by the proceedings.

U.S. Crypto Exchange halts business operations

On March 31 , Bittrex announced it was ceasing operations in the United States. The company announced on Twitter:

Due to ongoing regulatory uncertainty, we have made the difficult decision to cease our operations in the United States effective April 30, 2023. All funds are secure and available for full withdrawal immediately.

Crypto Exchange thus joined a number of crypto companies that do not want to do any further business in the USA due to the conflict-ridden situation. The company wanted to leave the North American location without upheaval.

In the run-up, there were already concrete disputes. In 2022, Bittrex paid a fine to the United States because the trading platform allegedly deliberately disregarded regulatory requirements. Sanctions and AML requirements were not complied with.

In April, the US Securities and Exchange Commission (SEC) made several allegations against the crypto exchange. Six of the cryptocurrencies offered are unregistered securities. In addition, Bittrex operated as an unregistered broker and as an illegal exchange.

Oliver Linch, CEO of Bittrex Global stated that the SEC never tried to find a diplomatic solution.

Bittrex US unexpectedly files for bankruptcy

Ultimately, the withdrawal from the USA was not entirely without a break. A few hours ago, U.S. Crypto Exchange announced that it had now also filed for bankruptcy in the USA . The bankruptcy proceedings come as a surprise as the crypto exchange plans to cease all operations in the United States by the end of April.

Having previously announced that Bittrex, Inc. will cease operations in the United States effective April 30, we have now decided to file for Chapter 11 bankruptcy in federal court in Delaware.

Users who have not withdrawn their deposits by April 30 are promised the opportunity to get the money back in the future. In fact, however, this could be difficult because a bankruptcy court is now making decisions about the funds held in custody.

Experience has shown that this can result in delays of months or even years. Mt.Gox is currently making paybacks after the company collapsed in 2014.

The bankruptcy proceedings only affect the US arm of the company: Bittrex US. The global company Bittrex Global remains active as usual.