Breaking News: Bittrex, one of the largest cryptocurrency exchanges, filed for bankruptcy protection
Breaking News: Bittrex, one of the largest cryptocurrency exchanges, has filed for bankruptcy protection following a lawsuit by the SEC. The exchange's US operations have ceased, while non-US operations remain unaffected. Bittrex's assets and liabilities were estimated to be between $500m and $1bn.
Despite the bankruptcy filing, Bittrex intends to distribute crypto assets still held for US customers who did not withdraw funds before April 30, and assures customers that their assets are safe and secure.
The SEC lawsuit alleged that former CEO William Shihara encouraged crypto asset issuers seeking to make their tokens available on the platform to delete public statements that could lead regulators to investigate those token offerings as securities. Bittrex has denied the allegations, stating that the crypto assets on its platform were not securities or investment contracts.
Bittrex is the latest crypto entity to file for bankruptcy, joining fellow exchange FTX and a host of lenders like Celsius, Voyager and BlockFi.
This news marks the latest development in a challenging year for many crypto companies, who have struggled with falling asset prices and regulatory scrutiny. Stay tuned for updates.
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