- The company previously said it was pulling out of the US under pressure from regulators.
- The exchange proposed a liquidation plan under which creditors will receive up to 100% of their funds
Yesterday, May 8, the Bittrex cryptocurrency exchange filed statement about bankruptcy. Judging by court documents, the company has about 100,000 creditors with total liabilities ranging from $500 million to $1 billion.
This is reported by Randall G. Reese, founder of the Chapter11Dockets project. This platform monitors bankruptcy filings of large counterparties, after which it covers them on the network.
Also, based on the publication of Reese, the exchange proposed a liquidation plan. According to him, creditors will receive up to 100% of their investments. But, of course, this may change in the future.
Note that Bittrex has not yet commented on the situation. Earlier, the exchange was forced to cut some staff in order to optimize costs.
After that, the Securities and Exchange Commission (SEC) filed a lawsuit against the company, accusing it of a number of violations. As a result, the company left the market, citing pressure from the regulator.
The bankruptcy filing has nothing to do with Bittrex Global, which operates outside the US. Apparently, the liquidation of the American division is evidence that the company is completely shutting down its activities in the country and has no plans to return.
In this case, the chances that creditors will actually receive up to 100% of their funds, and in the shortest possible time, are quite large. The situation will become clearer after Bittrex releases an official statement.
