Suspicious Transactions Worth $500 Million Found in Bittrex Bankruptcy Documents

Bittrex's bankruptcy reveals $500 million in suspicious transactions.

Documents filed during the bankruptcy proceedings of cryptocurrency exchange Bittrex reveal tens of thousands of questionable transactions totaling $500 million. These could impact payouts to nearly 1.5 million clients, reported researcher Pasha Onur. 

In his analysis, Onur identified 28 transfers of exactly 0.00000001 BTC (less than $0.01) and 5 transactions of 0.00000002 BTC, conducted on March 10, 2023. With withdrawal fees set at $25-60, such operations are economically unfeasible, the expert noted.

Onur also recorded 10,236 identical withdrawals of 0.00022083 BTC and 9,482 transfers of 0.00023109 BTC—a statistically improbable coincidence for different users. In the fiat segment, he found 681 withdrawals of $5 with a $25 fee.

Nearly 99.5% of all operations occurred on specific dates: February 9-10 and March 10-11, 2023. Of these, 93% took place on the tenth day of each month. 

The 2023 reports also include 127 withdrawals to the LoMoCoin (LMC) blockchain, which ceased operations in 2021. Onur identified another statistically improbable anomaly—transfers of 2272.727273 LMC repeated in transactions by 52 different users.

The researcher highlighted a characteristic pattern of fraud, similar to schemes seen in FTX, Celsius, and some other platforms. 

What Does This Mean for Creditors? 

At the time of bankruptcy, Bittrex had a user base of 1.6 million people. Fewer than 36,000 of them filed claims. 

“If the withdrawal transactions are fabricated, then client balances are incorrect, and thus, creditor claim amounts are inaccurate,” Onur explained in a comment to DL News.

According to him, the list of the 20 largest creditors, used to check for conflicts of interest and determine payment priorities, is also based on potentially compromised data. 

The process for creditors to file claims against Bittrex concluded in April. Payouts have yet to begin.

A History of Violations  

Bittrex was founded in Seattle, USA, in 2014. Nine years later, the exchange filed for bankruptcy—just weeks after accusations from the SEC regarding legal violations. 

Regulatory issues began in 2019 when the NYDFS rejected the platform’s application for a virtual currency license, deeming the company’s compliance policies inadequate or nonexistent. 

In 2022, Bittrex was fined $29 million for repeated violations of sanctions policies and AML procedures, processing illegal transactions totaling $263 million. 

In July 2023, the platform attempted to challenge the SEC’s authority over cryptocurrency regulation in court. Two months later, it reached a settlement with the regulator, paying a $24 million fine. 

In August 2025, the SEC and Ripple Labs concluded a legal dispute that had lasted five years.