Bittrex Global Assures Stability Amid Bankruptcy Confusion

1. Bittrex assured that its global operations will continue and customer funds are safe.
2. The Chapter 11 bankruptcy filing will only affect Bittrex US and Bittrex Malta.
3. Some believe that the bankruptcy filing is only a regulatory exit.

Bittrex Global, one of the earliest-surviving cryptocurrency exchanges today, clarified the context behind the Chapter 11 bankruptcy filing. According to the exchange’s Twitter thread, the bankruptcy filing will only affect Bittrex US and Bittrex Malta.

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The exchange revealed that its US exchange still holds some funds from customers who did not withdraw their assets despite the 1-month notice. As stated in the thread, the Chapter 11 filing’s primary purpose is to take off those customer funds out of the hands of Bittrex US and let the US regulators send back the assets to their rightful owners.

Bittrex Malta was also included in the filing. This entity, according to Bittrex Global, is a dormant exchange that nobody uses and will be removed formally. 

Meanwhile, Bittrex Global assured customers that its global operations will continue and that their funds are safe and ready for withdrawal should they wish to do so.

The exchange wrote:

Meanwhile, many in the crypto space had varying opinions and speculations on what is really happening with Bittrex. Some assume that this bankruptcy filing is a strategy for Bittrex to escape the clutches of US regulators. Crypto firm Heimdall also expressed its confidence in Bittrex Global’s financial capacity to continue and that the move is just a “regulatory exit.”

Earlier this year, Bittrex announced that it would wind down its operations in the US due to regulatory pressure. The exchange has provided customers with a timeline for its closure and advised them to withdraw their assets before the mentioned deadline.

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