Bittrex’s US bankruptcy plan cleared by court

A US court has agreed to wrap up Bittrex’s bankruptcy plans several months after the exchange made the decision to wind down operations in the States

article-image

Piotr Swat/Shutterstock, modified by Blockworks

share

The US Bankruptcy Court for the District of Delaware approved Monday the amended Chapter 11 liquidation plan for Bittrex and its associated entities, including Desolation Holdings LLC.

Despite the procedural rigor behind the ruling, questions remain as the court-approved decision moves the Seattle-based company toward liquidating its assets to repay creditors. 

Bittrex filed for Chapter 11 bankruptcy relief in the US in May. Rather than reorganizing its debts, which is often the objective of Chapter 11 filings, the company elected a plan of liquidation. 

With the green light from the court, Bittrex is now authorized to proceed with the selling off of its US-based assets, per a court filing on Monday.

The court’s confirmation came after a series of filed motions, hearings and supplemental plans.

Included in these were various declarations in support of the plan in October. Yet, the path to this confirmation has not been without hurdles. 

The court overruled objections to the plan but did not disclose specific details about these objections. That raised questions about the potential issues that might have been voiced by creditors or other parties involved in the proceedings. 

Less than a month after facing charges from the Securities and Exchange Commission for operating an unregistered securities exchange, Bittrex filed for bankruptcy in May. By the end of April, the Seattle-based firm ceased its US operations.

In June, the court ordered that Bittrex be allowed to re-enable withdrawals following its bankruptcy declaration a month earlier. At the time, the exchange reportedly owed digital assets to more than 100,000 US-based creditors.

Bittrex’s next steps involve the execution of its liquidation plan. The company needs to pay all necessary legal fees until the bankruptcy case is finished. It also needs to file regular reports about their financial situation, per the filing.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Brooklyn, NY

SUN - MON, JUN. 22 - 23, 2025

Blockworks and Cracked Labs are teaming up for the third installment of the Permissionless Hackathon, happening June 22–23, 2025 in Brooklyn, NY. This is a 36-hour IRL builder sprint where developers, designers, and creatives ship real projects solving real problems across […]

recent research

Nillion_DeSci_Report_Template.png

Research

Nillion’s Monad Integration is poised to catalyze the next phase of DeSci’s evolution by eliminating key privacy bottlenecks. This synergy allows researchers, institutions, and DAOs to exchange sensitive data and insights securely while managing governance and payments onchain.

article-image

Blockworks Research also thinks that net new assets (NNAs) are a metric to keep an eye on

article-image

The Republican-sponsored GENIUS Act has passed a key procedural vote in the US Senate. 

article-image

Cash enables law evasion at a small scale and crypto enables it on a large scale

article-image

Vibe coders are shipping faster than you think

article-image

A downgrade from Moody’s had US Treasury yields on the rise, but history says the volatility should be short-lived

article-image

The game offers 1v1 battles, plus optional NFTs and wagering