Bittrex files for bankruptcy protection

On May 8, the bitcoin exchange Bittrex filed for bankruptcy protection with a Delaware court in the United States. Reuters reports.

According to the suit, the company’s assets and liabilities total between $500 million and $1 billion. The number of creditors exceeds 100,000.

Two subsidiaries — Bittrex Malta Ltd. and Bittrex Malta Holdings Ltd. — filed similar petitions. According to the documents, the bankruptcy will not affect the international platform Bittrex Global.

The exchange filed for bankruptcy less than a month after a complaint from the U.S. Securities and Exchange Commission (SEC). The regulator accused Bittrex of operating an unregistered securities exchange.

In early April the company announced a winding down of operations in the United States due to “regulatory uncertainty.” The exchange asked clients to withdraw their funds by the end of the month.

“Having previously announced that Bittrex, Inc. would cease all operations in the United States on April 30, we have decided to file for bankruptcy under Chapter 11. … Bittrex Global will continue to operate normally outside the United States. For clients who did not withdraw assets from the platform by the end of April: your funds remain safe, and our top priority is to return them in full,” a company spokesperson said.

Bittrex noted 16 clients with more than $1 million on their accounts, without naming them. The largest active account on the platform holds assets worth $14.6 million. The exchange plans to petition the court for a limited reopening of accounts.

Earlier in May, the blockchain startup Everledger filed for voluntary bankruptcy and liquidation after a failed attempt to raise funds from investors.