One of the oldest and most well-known crypto exchanges in the US has just filed for bankruptcy in Delaware. Bittrex, which was founded in 2014, cited financial difficulties as one of the reasons for this decision.
The Seattle-based exchange currently owes more than $100 million to its creditors, including several crypto companies and service providers, and due to regulatory uncertainty, it has been difficult for it to restructure its debt.
As one of the oldest digital exchanges in the US, Bittrex was a leading platform for trading various altcoins. However, in the last years, the company faced numerous challenges, such as being sued by the SEC (U.S. Securities and Exchange Commission) for allegedly selling unregistered securities, losing its New York BitLicense, and facing competition from newer and more compliant exchanges. According to company reports, it currently has less than $50 million in assets, mostly in digital currencies.
The company has assured that it will continue to operate its platform and serve its customers during the bankruptcy process and that the bankruptcy filing would not impact Bittrex Global, which serves customers outside the United States. The company’s non-U.S. operations are based in Liechtenstein.
With regard to the U.S. customers who did not withdraw funds before April 30, Bittrex has said that it will keep them safe until distributed back to customers.
The company remains hopeful that in the future, it will be able to restructure its debt and emerge as a stronger and more sustainable business. However, the tendency for crypto exchanges to flop has become more and more apparent lately.
Several companies in the crypto industry have tumbled into bankruptcy over the past year, fueled by wartime, renewed regulatory scrutiny, the drop in asset prices, and in some cases, criminal charges.