Bittrex, new (big) domino to fall? Late victim of the aftershocks of the FTX earthquake, but also bullied in recent months by the American financial policeman, the venerable Bittrex platform, a major player in the Bitcoin industry, has just placed itself under the protection of the US Bankruptcy Court.
Bittrex Files for Bankruptcy, 100,000 Creditors Affected
Harassed by the Security Exchange Commissionriddled with debt, the Bittrex platform, active since 2014 now seems ready to throw in the towel.
The actor who has accompanied many clients in the discovery of bitcoin and crypto for nearly a decade, just filed for Chapter 11 protection of the bankruptcy law in the district of Delaware.
According to the documents filed, Bittrex says it has more than 100,000 creditors, between $500 million and $1 billion in assets, and also between $500 million and $1 billion in liabilities. A range that we will politely qualify as wide, even if the big crypto players have accustomed us to their relative capacity correctly value their own assets…
It should be noted that the procedure concerns the Bittrex entity based in Seattle, as well as two Bittrex branches in Malta and an affiliated company, Desolation Holdings LLC. Bittrex Global GmbH, the “world” structure of Bittrex, based in Liechtenstein (a small country which is currently revealing his great ambitions crypto) is not included in the procedure.
This bankruptcy procedure seems to be a direct consequence of the pressure exerted by the SEC, which accuses the platform of the now classic “marketing of unregistered securities.”
In his crusade, the Constable Fellow also found support from the circumstances of theOFAC which accused Bittrex of violations of the Bank Secrecy Act (Bank Secrecy Act). This procedure was settled by an amicable settlement for an amount of 29 million dollars, which makes the passage of the OFAC… Bittrex’s biggest creditors.
Bad times for crypto platforms that continue to suffer the rigors of regulation and the onslaught of the authorities, at the worst of a bear market that drags on.
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