Key Insights
- Bittrex, a crypto exchange, has received court approval for its revised bankruptcy plan to close its U.S. operations. This move follows the SEC’s charges of running an unregistered exchange.
- Bittrex filed for Chapter 11 bankruptcy protection in May and settled with the SEC for $24 million in August, paving the way for the approval of its liquidation plan.
- While its U.S. operations have ceased, Bittrex Global, its non-U.S. arm, continues to operate.
Crypto exchange Bittrex has received the green light from the court to proceed with its revised bankruptcy plan, aimed at winding down its operations in the United States. The decision came following a hearing in Delaware, where Judge Brendan Shannon approved the company’s liquidation plan for repaying remaining creditors.
The move towards bankruptcy protection began in May when Bittrex filed for Chapter 11, prompted by the Securities and Exchange Commission’s charges of running an unregistered exchange. The legal saga reached its resolution in August when the company settled with the SEC for a payment of $24 million.
Bittrex Global continues to operate
While Bittrex has shuttered its U.S. operations, Bittrex Global continues to operate in other parts of the world. Bittrex Global CEO, Oliver Linch, sought to reassure those who may be apprehensive about dealing with U.S.-based exchanges due to regulatory uncertainties, stating that “if they want to do business with a non-U.S. regulated digital assets exchange, Bittrex Global is here for you.”
Bittrex was once a major player in the U.S. cryptocurrency exchange landscape, boasting a market share of nearly 23% in early 2018, according to data from The Block. However, its fortunes took a significant hit, plummeting to below 1% in 2021, and it has struggled to regain its former prominence ever since.