Crypto exchange Bittrex has filed for bankruptcy following an investigation by the regulator
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Crypto exchange Bittrex filed for bankruptcy three weeks after the US Securities and Exchange Commission (SEC) accused it of operating as an unregistered securities exchange. This is reported by Reuters.
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Seattle-based Bittrex ceased operations in the US on April 30 and said the bankruptcy filing will not affect Bittrex Global, which serves clients outside the country. The company’s non-US operations are based in Liechtenstein.
According to a bankruptcy filing filed in Wilmington, Delaware, Bittrex’s assets and liabilities ranged from $500 million to $1 billion.
Crypto assets of American clients
Bittrex said it is still holding the crypto assets of US customers who have not withdrawn funds by April 30.
According to the crypto exchange, these assets are securely protected and the company intends to apply to the bankruptcy court for a limited re-opening of client accounts so that the cryptocurrency can be distributed among clients.
Several companies in the crypto industry have gone bankrupt in the past hour due to falling asset prices, resumption of regulatory inspections, and in the case of the once famous FTX exchange, due to criminal charges.
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The SEC filed a lawsuit against Bittrex on April 17, alleging that former CEO William Shihara encouraged issuers of cryptoassets seeking to make their tokens available on the company’s platform to remove public statements that could prompt regulators to investigate these token offerings as securities.
Read also: Bankrupt exchange FTX returned $7 billion worth of assets
Bittrex denies the SEC’s charges, stating that crypto assets on its platform are not securities or investment contracts.
While the SEC’s lawsuit is pending, Bittrex previously agreed to pay a $29 million fine to the US Treasury Department for “clear violations” of sanctions against certain countries and anti-money laundering laws.
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Source: Ministry of Finance
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