US Crypto Exchange Bittrex Files For Bankruptcy (coindesk.com) 23
According to CoinDesk, crypto exchange Bittrex has filed for bankruptcy in the U.S. state of Delaware, "months after announcing it would wind down operations in the country and weeks after being sued by the Securities and Exchange Commission (SEC)." From the report: The exchange believes it has more than 100,000 creditors, with estimated liabilities and assets both within the $500 million to $1 billion range, according to a court filing shared by Randall Reese of Chapter 11 Dockets, a bankruptcy tracker. Bittrex's U.S. branch has had a rough 2023 so far, laying off 80 people in February and announcing in March that it would end all operations by the end of April. These changes have not affected Bittrex Global, the non-U.S. crypto exchange.
Despite Bittrex's impending exit from the U.S., the SEC sued it in mid-April on allegations it operated a national securities exchange, broker and clearing agency. The SEC also sued former Bittrex CEO Bill Shihara and Bittrex Global. Bittrex Global CEO Oliver Linch said last month that the exchange intended to fight these charges in court, but a bankruptcy proceeding may make this more difficult.
Despite Bittrex's impending exit from the U.S., the SEC sued it in mid-April on allegations it operated a national securities exchange, broker and clearing agency. The SEC also sued former Bittrex CEO Bill Shihara and Bittrex Global. Bittrex Global CEO Oliver Linch said last month that the exchange intended to fight these charges in court, but a bankruptcy proceeding may make this more difficult.
Assets (Score:4, Insightful)
assets both within the $500 million to $1 billion range
So around $10million in actual physical equipment etc, the rest in fairy money.
Re: Assets (Score:2)
They have 100,000 ex-customers, apparently. Bet they're all bitter.
Re: (Score:2)
They have 100,000 ex-customers, apparently. Bet they're all bitter.
More like they have 100,000 customers who didn't read the memo that they were closing by the end of April and had yet to pull their "coins" or transfer them to another digital wallet system.
The irony (Score:2)
but the SEC is by far the largest risk of loss to investors in the cryptocurrency / DEFI space.
That Gensler guy needs to get fired ASAP.
Re: (Score:2)
There is no such thing as investing into cryptocurrency. That's like saying I'm investing in the British pound. No, you're not. But, technically, you mean investing into a business that deals with cryptocurrencies, which, I suppose, is similar to investing in a bank's business. Now, I'm all for rich investors throwing their money away because they're too stupid to understand a scam when they see one, because investors are lazy pieces of shit who are not needed in the least bit in society.
If anything, the SE
Re: (Score:2)
It's also worth noting that if a regulator's actions take down a significant number of the banks which primarily hold debt denominated in a country's currency, that currency itself may be significantly damaged in value due to those actions.
Re: (Score:2)
Maybe, maybe not (Score:1)
And another one gone (Score:3)
Like saying 'Hold my beer' to a stranger (Score:4, Funny)
and then getting upset that he drank your beer.
Re: (Score:1)
Yeah, I thought /. had moved on from crypto to LLMs.
A brief history of Slashdot:
...
1) News for Nerds
2) mobile phones
3) billionerds and their ventures
4) crypto
5) LLMs
n) porn
n+1) profit!
Now we just need (Score:5, Insightful)
100 crypto exchanges on the net, 100 crypto exchan (Score:2)
Another one goes bust, as this one did just,
200 crypto exchanges on the net...
Re: (Score:2)
As long as there are enough morons with money. So probably forever. On the other hand. crapcoins are doing massive damage by providing the money-laundering for Ransomware, hacking-for-hire and other criminal enterprises which would not amount to anything without that money-laundering possibility. And regulators have noticed and are starting to do something about it.
Yeah but it's wack-a-mole, so 101... (Score:2)
if one of these exchanges should happen to fall,
there'll be 102 crypto exchznges on the net
(just not in the USA. Allow me to introduce you to our sponsored product today... NordVPN! )
Unable to narrow down assets and liabilities (Score:4, Insightful)
estimated liabilities and assets both within the $500 million to $1 billion range
When I see a financial institution unable to provide a range that isn't +/- 33% ($750 +/- $250M), I immediately think there is something fishy - either their assets and liabilities vary so much every day (high volatility) or they have a huge mess in accounting (fired all accountants, or never had them in the first place like FTX). No wonder they are going bankrupt.
Re:Unable to narrow down assets and liabilities (Score:4, Informative)
when the sec kills banks that you have accounts wi (Score:1)
Never! (Score:2)
Oh, fiat currencies can/will hyperinflation, but crypto will be safe....
As Charlie Stross said, several years ago, "invest in crypto now, or you'll miss your chance to lose everything!"
Just what you want from a fiduciary (Score:2)
The exchange believes it has more than 100,000 creditors, with estimated liabilities and assets both within the $500 million to $1 billion range
They don't know who they owe and how much they owe. I could get better financial details from a corner crack dealer.