Bittrex Crypto Files for Chapter 11 Bankruptcy?

The Bittrex Crypto Exchange, one of the prominent cryptocurrency exchanges in the United States, has officially filed for Chapter 11 bankruptcy in Delaware on Monday. This decision came less than a month after the Security Exchange Commission (SEC) accused Bittrex of violating security regulations repeatedly over several years.

About Bittrex Crypto

The Bittrex exchange is estimated to have assets and liabilities worth between $500 million to $1 billion, according to court filings. Additionally, two other Bittrex entities, Bittrex Malta Ltd. and Bittrex Malta Holdings Ltd., also filed for bankruptcy protection in the same court on Monday.

Previous History of Bittrex Exchange and the SEC

The SEC had filed a lawsuit against Bittrex in April, alleging that the exchange was operating as an unregistered broker, exchange, and clearing agency. The lawsuit was a severe blow to the company, which had been one of the largest cryptocurrency exchanges in the US, with a market share of almost 23% in 2018. However, since 2021, the company’s market share has fallen below 1%.

The bankruptcy of Bittrex is not an isolated incident in the cryptocurrency industry, as other exchanges have also faced legal challenges recently. One of the recent examples is the Japanese cryptocurrency exchange bitFlyer, which was slapped with a lawsuit in April.