Crypto Exchange Bittrex Files for Bankruptcy Following SEC Enforcement Action After Nearly a Decade in Business

Seattle-based crypto exchange Bittrex has filed for bankruptcy as it faces ongoing regulatory challenges in the United States.

Richie Lai, the exchange’s co-founder and chief executive, acknowledged the filing in a tweet on Monday.

“Yes, we filed chap 11. Yes, we still have 100% of all customer funds. Yes, there will be a claims process through the bankruptcy courts. This was the cleanest way to bury the baby — RIP Bittrex Exchange.”

Bittrex notes on its website that the bankruptcy announcement does not impact the exchange’s foreign affiliate, Bittrex Global, which “will continue operations as normal for its customers outside the US.”

Last month, the U.S. Securities and Exchange Commission (SEC) charged Bittrex and its co-founder and former CEO William Shihara with operating an unregistered national securities exchange, broker, and clearing agency.

The SEC also charged Bittrex Global for failing to register as a national securities exchange in connection with its operation of a single shared order book with the Seattle-based company.

The regulator alleges that Omise Go (OMG), Algorand (ALGO), Dash (DASH), Tokencard (TKN), i-House Token (IHT) and Naga (NGC) are securities. All six were available for trading on Bittrex.

Bittrex began winding down its operations in the US in late March. The exchange says customers who have not yet withdrawn their funds will receive them in a distribution organized by a bankruptcy court in Delaware.

Generated Image: Midjourney