Cryptocurrency exchange Bittrex has officially filed for Chapter 11 bankruptcy protection from its creditors.
The bankruptcy filing comes three weeks after the U.S. Securities and Exchange Commission (SEC) accused the company of operating an unregistered securities exchange.
Seattle-based Bittrex ceased operations on April 30 of this year, and it said the bankruptcy filing does not impact Bittrex Global, which serves customers outside the U.S.
The company’s overseas operations are based in Liechtenstein.
In the bankruptcy filing, Bittrex listed liabilities of between $500 million U.S. and $1 billion U.S. The company added that it continues to hold crypto assets of U.S. customers who did not withdraw funds before April 30.
Bittrex has asked the bankruptcy court for a limited re-opening of customer accounts so that digital assets can be distributed back to all of its customers.
The SEC launched a lawsuit against Bittrex on April 17, alleging that the company dealt in unregistered securities.
Bittrex has denied the SEC’s allegations, saying the crypto assets on its exchange were not securities similar to stocks. The SEC’s lawsuit is still active.
Bittrex previously agreed to pay $29 million U.S. in fines to the U.S. Treasury Department for violating anti-money laundering laws.
Bittrex’s bankruptcy filing lists the U.S. Treasury Department as its biggest creditor, with more than $24 million U.S. still owed to the government agency.
