When crypto exchange FTX collapsed revealing a scam underneath, it not only shed light on its rivalry with Binance, but also triggered a massive sell-off that robbed the crytocurrency market of liquidity. The incident also sparked off a spate of bankruptcies at crypto exchanges and layoffs by those that survived.
The latest in the crypto industry to bite the dust is US-based Bittrex, which filed for bankruptcy after facing accusations of running a securities exchange without registration.
Trying to return assets to clients
According to the petition filed in Delaware, both assets and liabilities of the crypto exchange are between $500 million and $1 billion.
The Seattle-based firm's operations outside US are run from Liechtenstein in Europe, and it is holding on to virtual assets of Americans who haven't withdrawn their investments.
The petition has been filed to ask the court's permission for re-opening accounts, so that the clients could have their assets back.
As for the allegations, Bittrex has denied that any kind of securities or investment contracts are traded from its platform.
Before the Securities and Exchange Commission's probe, Bittrex had also been pulled up by the treasury department for violating sanctions on some countries, after which it agreed to pay $29 million as a penalty.
(To receive our E-paper on WhatsApp daily, please click here. To receive it on Telegram, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)