Bittrex filed for bankruptcy after the SEC sued the company

Crypto exchange Bittrex is approved to borrow $6.8 million in bitcoin to fund its US Chapter 11 bankruptcy.

In the court hearing, which took place this week in Wilmington, Delaware, Bittrex’s lawyers said the exchange had enough crypto to return customer funds. The loan would instead be used to protect and ensure a smooth bankruptcy process for both customers and the company. 

According to a Reuters report, Judge Brendan Shannon approved the loan, allowing Bittrex to borrow 250 bitcoin (BTC) on an interim basis from Aquila Holdings — its parent company. 

Seattle-headquartered Bittrex is expected to ask for an additional 450 BTC ($12.2 million) in June. The company filed for bankruptcy on May 8.

However, it halted US operations at the end of April, days before the SEC sent both Bittrex US and Bittrex Global a Wells notice and sued Bittrex US for running an unregistered securities exchange. Bittrex Global is incorporated in Liechtenstein.

In the suit, the SEC alleges that six of the tokens listed on Bittrex fall under the definition of securities under current law, including algorand (ALGO) and DASH. Bittrex did not immediately return a request for comment.

Bittrex Global CEO Oliver Linch previously told Blockworks the decision to shutter Bittrex US came because “we only believe in doing the right thing and we, literally, can’t because we don’t know what that means.”

According to Linch, neither Bittrex US nor Bittrex Global were given the opportunity to respond to the SEC’s Wells notice, though lawyers from Bittrex have been in contact with the SEC since.

source: blockworks

image source: ai

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Bittrex Faces Charges for Operating an Unregistered National Securities Exchange and Clearing Agency

The US Securities and Exchange Commission (SEC) has charged Seattle-based cryptocurrency exchange Bittrex and its former CEO, William Shihara, with operating an unregistered national securities exchange, broker, and clearing agency. In addition, the SEC has charged Bittrex’s foreign affiliate, Bittrex Global GmbH, for failing to register as a national securities exchange in connection with its operation of a single shared order book along with Bittrex.

Read more. https://nftstudio24.com/us-sec-charges-crypto-exchange-bittrex-for-operating-unregistered-securities-exchange/

#BTC #sec #bittrex

Recently, Bittrex, a well-known cryptocurrency exchange platform, made headlines after revealing that it had filed for bankruptcy. This news sent shockwaves throughout the cryptocurrency community, leaving many investors and traders concerned about the future of the platform.

In a statement released by the company, Bittrex disclosed the primary reasons behind its decision to file for bankruptcy. According to the statement, the company's financial woes can be attributed to several factors, including declining trading volumes, increased competition from other exchanges, and mounting regulatory pressure.

One of the major reasons cited by Bittrex was the decline in trading volumes. The company reported that it had experienced a significant drop in trading activity over the past few months, which had a direct impact on its revenue streams. This decline in trading volumes was attributed to the overall downturn in the cryptocurrency market, as well as increased competition from other exchanges.

In addition to declining trading volumes, Bittrex also mentioned increased competition from other exchanges as a contributing factor. The company noted that the competition had intensified in recent months, as more and more exchanges entered the market. This increased competition had made it more difficult for Bittrex to attract new users and retain existing ones.

Finally, Bittrex also cited regulatory pressure as a primary reason for its bankruptcy filing. The company noted that it had been subject to increased regulatory scrutiny over the past year, which had led to increased compliance costs and legal fees. This had placed a significant strain on the company's finances and had ultimately led to its decision to file for bankruptcy.

Despite these challenges, Bittrex remained optimistic about its future prospects. The company noted that it was working closely with its creditors and other stakeholders to develop a restructuring plan that would allow it to emerge from bankruptcy stronger than ever. Bittrex also stressed that it remained committed to its users and would continue to provide them with high-quality service and support.

In conclusion, the announcement of Bittrex's bankruptcy filing came as a surprise to many in the cryptocurrency community. While the company's financial struggles can be attributed to several factors, including declining trading volumes, increased competition, and regulatory pressure, it remains to be seen how Bittrex will navigate these challenges and emerge from bankruptcy. Nevertheless, the company's commitment to its users and its efforts to restructure and improve its operations provide some hope for a positive outcome in the future.

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