Cryptocurrency exchange Bittrex has successfully received court endorsement for its updated bankruptcy plan, leading to the cessation of its operations in the United States.
Legal documents reveal that on Monday, in a Delaware court, Judge Brendan Shannon gave the green light for the company’s liquidation strategy, designed to settle outstanding debts with remaining creditors.
“The Court has decided to issue a revised Proposed Order, addressing the informal remarks from the SEC, as was verbally communicated during the Hearing,” the court filing articulated.
Bittrex found itself in a precarious position, filing for Chapter 11 bankruptcy protection in May, following allegations from the Securities and Exchange Commission (SEC) of operating an unlicensed exchange. By August, Bittrex reached a settlement with the SEC, agreeing to a $24 million penalty.
While Bittrex’s U.S. operations have come to a halt, its international arm, Bittrex Global, continues to operate.
Oliver Linch, CEO of Bittrex Global, extended reassurances in August to those becoming increasingly hesitant about U.S. ties due to the unpredictable regulatory environment, stating, “for those looking to engage with a digital assets exchange outside of U.S. jurisdiction, Bittrex Global stands ready to assist.”
Back in early 2018, Bittrex was a dominant player in the U.S. cryptocurrency exchange market, boasting nearly 23% of the USD market support, according to data from The Block. Nevertheless, its market share took a nosedive, plummeting to under 1% in 2021, with no signs of recovery since then.