Bittrex Gets Court Nod for U.S. Shutdown in Bankruptcy Case

Defunct crypto exchange operator Bittrex has received court approval for its revised bankruptcy plan to wind down its U.S. operations. This marks a pivotal moment in the ongoing saga of Bittrex's Chapter 11 bankruptcy protection filing in May.

At the recent hearing in Delaware, Judge Brendan Shannon granted approval for Bittrex's liquidation plan, which outlines the process of repaying its remaining creditors. The court's decision reflects a resolution of the Securities and Exchange Commission's (SEC) informal comments on the matter.

To provide context, Bittrex found itself in this position after the SEC accused it of operating an unregistered exchange. The company subsequently reached a settlement with the SEC, agreeing to pay a substantial $24 million fine in August. Bittrex previously secured a loan of 250 $BTC for the bankruptcy proceedings, which was promptly approved by Judge Shannon.

Global Operations Persist

While Bittrex's U.S. operations have ground to a halt due to these legal complications, its international counterpart, Bittrex Global, continues to operate without hindrance. In response to the increasing concerns regarding regulatory uncertainties in the U.S., Bittrex Global's CEO, Oliver Linch, offered assurance, stating: "if they want to do business with a non-U.S. regulated digital assets exchange, Bittrex Global is here for you."

It's worth noting that Bittrex was once a major player in the U.S. cryptocurrency exchange landscape, boasting a market share of almost 23% at the beginning of 2018, according to public on-chain data (for volume). However, its fortunes took a downturn, with its market share plummeting to below 1% in 2021, and it has struggled to recover since.

This development in the Bittrex bankruptcy case underlines the ever-evolving regulatory environment within the cryptocurrency industry and the lasting implications it can have on even well-established entities.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.