Seattle-based crypto exchange Bittrex has filed for bankruptcy as it faces ongoing regulatory issues in the United States.
Richie Lai, the co-founder and CEO of the exchange, acknowledged the submission in a tweet on Monday.
“Yes, we have filed Chapter 11. Yes, we still have 100% of all customer money. Yes, there will be a claim procedure through the bankruptcy court. This was the cleanest way to bury the baby – RIP Bittrex Exchange.
Bittrex notes on its website that the bankruptcy announcement does not affect the exchange’s foreign affiliate, Bittrex Global, which will “continue normal operations for its clients 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 stock exchange, broker, and clearing house.
The SEC also sued Bittrex Global for failing to register as a national stock exchange in connection with operating a single shared order book with the Seattle-based company.
The regulator claims 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 started phasing out its US operations at the end of March. The exchange says that customers who have not yet withdrawn their funds will receive them in a distribution organized by a bankruptcy court in Delaware.
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