Cryptocurrency exchange Bittrex filed for bankruptcy on May 8, becoming the second largest platform for buying and selling coins to fail after FTX, amid a legal fight with a powerful regulator. The cryptocurrency industry is again overtaken by bankruptcies. Since March, the fledgling financial services industry, powered by Blockchain technology, thought that it had bankruptcies behind it. It was also the big winner of the problems of the traditional financial system, marked by the failure of three regional banks – Silicon Valley Bank, Signature Bank in New York and more recently First Republic Bank. Many unknowns remain about the soundness of the traditional banking system. But an event just reminded the crypto sphere that it is not immune, and that FTX’s problems were not isolated. Bittrex, a cryptocurrency exchange, filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court in Wilmington, Del. on Monday. The Chapter 11 filing only covers the U.S affiliate, which is based in Seattle, Washington. Bittrex Global, which serves customers outside the US, will continue to operate as normal, the company said. The exchange believes it has more than 100,000 creditors, with estimated assets ranging between $500 million to $1 billion, according to a court filing. This announcement is not really a surprise. The U.S subsidiary of Bittrex had warned in March that it would cease its operations in the country at the end of April.
Full story : Big Crypto Exchange Goes Bankrupt.
