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
Piotr Swat/Shutterstock, modified by Blockworks
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:
- Blockworks Daily: Unpacking crypto and the markets.
- Empire: Crypto news and analysis to start your day.
- Forward Guidance: The intersection of crypto, macro and policy.
- 0xResearch: Alpha directly in your inbox.
- Lightspeed: All things Solana.
- The Drop: Apps, games, memes and more.
- Supply Shock: Bitcoin, bitcoin, bitcoin.
