Crypto Exchange Bittrex Receives Court Approval for Revised Bankruptcy Plan
Crypto exchange Bittrex has been granted court approval for its revised bankruptcy plan to wind down its operations in the United States. The approval was given by Judge Brendan Shannon at a hearing in Delaware. The liquidation plan aims to repay the remaining creditors of the company.
Background and Settlement with the SEC
In May, Bittrex filed for Chapter 11 bankruptcy protection after being charged by the Securities and Exchange Commission (SEC) with operating an unregistered exchange. However, the company reached a settlement with the SEC for $24 million in August.
Continued Operations Outside the U.S.
While Bittrex has closed its operations in the United States, its international platform, Bittrex Global, is still active. In August, CEO Oliver Linch assured users who were concerned about regulatory uncertainty in the U.S. that Bittrex Global is available as a non-U.S. regulated digital assets exchange.
Decline in Market Share
Bittrex was once one of the largest exchanges in the U.S., holding nearly 23% market share in early 2018. However, its market share declined to below 1% in 2021 and has not recovered since.
Hot Take: Bittrex’s Bankruptcy Approval Marks End of an Era
The court approval of Bittrex’s revised bankruptcy plan signifies the end of an era for the once-prominent U.S.-based crypto exchange. After facing legal challenges from the SEC, Bittrex made efforts to settle and wind down its operations within the country. However, it continues to offer services through its global platform to cater to users who prefer a non-U.S. regulated exchange. The decline in Bittrex’s market share reflects the competitive landscape of the crypto industry and the challenges faced by exchanges in navigating regulatory frameworks. As the crypto market evolves, the fate of exchanges like Bittrex serves as a reminder of the importance of compliance and adaptability in this rapidly changing industry.
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