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.

recent research

Research Report Templates.jpg

Research

Figure, founded by former SoFi CEO Mike Cagney, has emerged as a leader in onchain RWAs, with ~$17.5B publicly tokenized. The platform’s ecosystem volume is growing ~40% YoY as it expands beyond HELOCs into student loans, DSCR loans, unsecured loans, bankruptcy claims, and more. Operationally, Figure cuts average loan production cost by ~93% and compresses median funding time from ~42 days to ~10, creating a durable speed-and-cost advantage.

article-image

Former White House crypto official Bo Hines is expected to be the CEO of the new project

article-image

In bonds, stablecoins and billionaires, a reminder of what makes crypto special

article-image

21Shares exec says CPI and PPI data supports a Fed rate cut, with market leaning toward a 25bps decrease

article-image

The Ethereum co-founder suggested LINEA holders would be eligible for other airdrops in cryptic tweet

article-image

The layer-2’s biggest release yet brings benefits — but a post-upgrade outage caused a chain reorg

article-image

Crypto is shifting into risk-on mode — pump.fun dominates meme activity, while Lido leans on treasury maneuvers