Bittrex Files For Bankruptcy Following Encounter With SEC

The US-based cryptocurrency exchange Bittrex has declared for bankruptcy, just weeks after the Securities and Exchange Commission (SEC) announced it was suing the exchange. As one of the main crypto exchanges in the United States, its assets and liabilities are believed to be between $500 million and $1 billion, and it is believed to have more than 100,000 creditors. The SEC had filed a lawsuit against the US division for neglecting to register as a securities exchange.

Bittrex laid off 80 employees earlier this year, and the company has now joined a long list of crypto lenders and exchanges, including FTX and Celsius, that have filed for insolvency due to falling cryptocurrency prices. The exchange has guaranteed that its consumers' cryptocurrency deposits will be refunded in full.

The writing was on the wall.

As a consequence of the SEC lawsuit, Bittrex had ceased its US exchange operations a month ago. The exchange stated that the dearth of regulatory clarity makes it impossible for cryptocurrency exchanges to operate safely in the United States. This sentiment is shared by numerous US-based cryptocurrency exchanges, including Coinbase. Gary Gensler, chairman of the Securities and Exchange Commission, has also been under increasing scrutiny from government officials for his unpredictable approach to cryptocurrency regulation.

(About Bittrex)

Bittrex was a cryptocurrency exchange based in the United States that allowed users to purchase, sell, and trade a variety of digital assets. Bittrex was founded in 2014 and has since become one of the leading cryptocurrency exchanges in the United States. The platform provided access to a multitude of cryptocurrencies, such as Bitcoin, Ethereum, and Litecoin. The exchange was criticised for its high fees and occasional disruptions during peak trading periods. In May 2023, just weeks after being sued by the US Securities and Exchange Commission, the exchange filed for bankruptcy.