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.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the On the Margin newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2024

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Permissionless is a conference for founders, application developers, and users. Come meet the next generation of people building and using crypto.

recent research

Unlocked by Template (2).jpg

Research

Vertex has established itself as a formidable player in the perps DEX landscape. Its strategic approach to chain expansion, focusing on EVM-compatible networks and leveraging incentive programs, has proven largely successful. The reduced time-to-launch for each new chain integration highlights the team's growing expertise and the scalability of their technology. As Vertex continues to expand, it is well-positioned to capitalize on the increasing fragmentation of the perpetual DEX market, potentially consolidating liquidity across multiple chains through its Edge technology.

article-image

Solana veteran team launches validium blockchain optimized for DeFi

article-image

Sponsored

By collaborating to proactively identify and disrupt illicit activity, the T3 FCU aims to promote security and prosperity across the TRON network and beyond

article-image

Plus, the latest entrant into the crypto fund game

article-image

The goal of Tuesday’s inaugural Congressional hearing on DeFi was to “explore emerging topics” in digital assets, Rep. French Hill said

article-image

Blockworks Research analyst predicts 2025 will be a big year for economic changes on Solana

article-image

A tech industry coalition executive last week urged moderators to ask about crypto, noting that “passing bipartisan digital asset regulations is front and center this election cycle”