Bittrex USA files for bankruptcy

After layoffs, the closure of its business and accusations from the SEC, US exchange Bittrex is now announcing insolvency.

The US offshoot of crypto exchange Bittrex filed for Chapter 11 bankruptcy yesterday, 8 May. This means reorganisation and restructuring measures have to be taken. These should lead to a solution on how the crypto exchange can best compensate its creditors.

According to the motion filed in federal court in Delaware, Bittrex USA has debts of up to a billion dollars. The US exchange already closed its doors in early April. Accusations from the SEC followed on 17 April: Bittrex USA had operated an "unregistered securities exchange".

Cryptocurrencies unlisted on 30 April were seized from customers. How these funds left on the exchange will be distributed to creditors will be decided by the bankruptcy court, it added.

In a statement the company said the bankruptcy only affected US customers and that Bittrex Global was still able to operate. In February, the company laid off about 83 employees due to poor market conditions.

Oliver Linch, CEO of Bittrex Global, explained in an interview with Germany's BTC-ECHO, explaining why overregulation in the US ultimately does not produce winners.