Bittrex files for bankruptcy in the U.S
Bittrex files for bankruptcy in the U.S
Cryptocurrency exchange Bittrex has filed for Chapter 11 bankruptcy protection in Delaware federal court.
After the cryptocurrency platform announced its withdrawal from the U.S. market as of April 30, the decision was made to initiate bankruptcy proceedings.
However, this process will not affect the work of Bittrex Global. According to the information published on the Finance Magnates website, the bankruptcy applies to Seattle-based Bittrex Inc, two Bittrex companies in Malta and Desolation Holdings LLC, a subsidiary company.
According to the cryptocurrency exchange, the bankruptcy proceedings will affect more than 100,000 creditors with liabilities and assets ranging from $500 million to $1 billion.
Despite the bankruptcy proceedings and the court ruling, Bittrex will make every effort to expedite the process of unlocking the accounts of affected clients, the cryptocurrency exchange said in a statement.
"While the Bankruptcy Court will ultimately decide the method by which those funds can be claimed by and distributed to our customers, we intend to ask the court to activate those accounts as soon as possible so that customers meeting the necessary regulatory requirements will be able to withdraw them," Bittrex added.
It was previously reported that Bittrex was exiting the U.S. market after nine years in business.
Founded in 2015, Bittrex focuses on traders who prefer active trading. The exchange uses a cold storage method for cryptocurrencies, and its website uses innovative protocols to protect user data.
