Another crypto exchange Bittrex bites the dust; files for bankruptcy amidst SEC probe

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outside US are run from Liechtenstein in Europe, and it is holding on to virtual assets of Americans who haven't withdrawn their investments.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.

Repeat offender?

• 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.